When Cynthia Enters a Grocery Store, There Are Three Simple

question 20

Multiple Choice

When Cynthia enters a grocery store, there are three simple events: buy nothing, buy a small amount, or buy a large amount. In this situation, if Cynthia buys a small amount, she cannot also buy a large amount or buy nothing. How may one best classify these three events?

• A) They are mutually exclusive events.
• B) They are not mutually exclusive events.
• C) They are dependent events.
• D) They are independent events.

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Definitions:

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed.

Total Income

The sum of all earnings received by an individual or entity, including wages, salaries, benefits, and income from investments.

Total Taxes

The cumulative amount of taxes levied by a government on an individual, corporation, or other entity in a specified period, including income, sales, and property taxes.

Marginal Tax Rates

The rate at which your income above a certain threshold is taxed, showing the tax imposed on the incremental dollar of income.