When Income Is $15,000, the Amount of Income Income Taxes

question 134

Multiple Choice

When income is $15,000, the amount of income income taxes owed is $2,000; when income increases to $20,000, the amount owed increases to $3,000. The marginal tax rate in this case is

• A) 20 percent.
• B) 13.3 percent.
• C) 15 percent.
• D) 25 percent.

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Definitions:

Price Elasticity

An indicator of the extent to which the demand for a product varies following a price adjustment.

Total Revenue

The total amount of money generated from the sale of goods or services before any costs are subtracted.

Climate Change

The man-made change in Earth’s climate from the accumulation of greenhouse gases caused by the use of fossil fuels.

Price Elasticity

A way to gauge how fluctuations in price affect a good's market demand.