Refer to the information provided in Table 19.8 below to answer the question(s) that follow.
Table 19.8
$$\begin{array} { | c | c | }
\hline \text { Total Income } & \text { Total Taxes } \
\hline \$ 20,000 & \$ 2,000 \
\hline 40,000 & 4,800 \
\hline 60,000 & 9,000 \
\hline 80,000 & 16,000 \
\hline
\end{array}$$
-Related to the Economics in Practice on page 393: Refer to Table 19.8. If income increases from $20,000 to $40,000, the marginal tax rate is

Question

Refer to the information provided in Table 19.8 below to answer the question(s) that follow.
Table 19.8
 $$\begin{array} { | c | c | } 
\hline \text { Total Income } & \text { Total Taxes } \
\hline \$ 20,000 & \$ 2,000 \
\hline 40,000 & 4,800 \
\hline 60,000 & 9,000 \
\hline 80,000 & 16,000 \
\hline
\end{array}$$
-Related to the Economics in Practice on page 393: Refer to Table 19.8. If income increases from $20,000 to $40,000, the marginal tax rate is

Quizplus · Accepted Answer

The marginal tax rate is calculated as the change in total taxes divided by the change in total income. The change in taxes is $4,800 - $2,000 = $2,800, and the change in income is $40,000 - $20,000 = $20,000. Thus, the marginal tax rate is $2,800 / $20,000 = 0.14 or 14%.

Refer to the Information Provided in Table 19 -Related to the Economics in Practice on Page 393: Refer