If the marginal tax rate is _____, then the incentive to work harder is:
A) high; high.
B) high; reduced.
C) low; reduced.
D) low; low.

Name: If the marginal tax rate is _____, then the incentive to work harder is: A) high; high. B) high; reduced. C) low; reduced. D) low; low.
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Question

Quizplus · Accepted Answer

When the marginal tax rate is high, individuals keep less of each additional dollar they earn, which can reduce the incentive to work harder since the reward for additional effort is diminished.

If the Marginal Tax Rate Is _____, Then the Incentive