Suppose the government imposes a tax of 10 percent on the first $40,000 of income and 20 percent on all income above $40,000.What are the tax liability and the marginal tax rate,respectively,for a person whose income is $60,000

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For the first $40,000, the tax liability is 10% which is $4,000 ($40,000 x 0.1). 
For the income above $40,000, the tax liability is 20% which is $4,000 ($20,000 x 0.2).

So, the total tax liability for a person with an income of $60,000 is $8,000 ($4,000 + $4,000).

The marginal tax rate is the tax rate that applies to the last unit of income earned.

In this case, the marginal tax rate for a person with an income of $60,000 is 20%, since that is the tax rate that applies to the income above $40,000.

Suppose the Government Imposes a Tax of 10 Percent on the First