If an Individual Earns an Additional $300 and Has to Pay

question 107

Multiple Choice

If an individual earns an additional $300 and has to pay an additional $93 in income tax,his or her marginal tax rate is

• A)93 percent.
• B)9.3 percent.
• C)3.0 percent.
• D)31 percent.
• E)30 percent.

---

Definitions:

Ballot Measure

A proposal put to a vote of the general public, allowing voters to make direct decisions on legislation or policy issues.

School Funding

The financial resources provided for public schools, typically derived from taxes and allocated by governmental entities to support education.

Constituents

Members or components that form a part of a larger group, or individuals who are represented by elected officials.

Government Failure

Inefficiencies in resource allocation caused by problems in the operation of the public sector (government). Specific examples include the principal-agent problem, the special-interest effect, the collective-action problem, rent seeking, and political corruption.