What is the difference between the average and marginal tax rates effects on the labour supply?

Question

Quizplus · Accepted Answer

The average tax rate is the total tax paid divided by total income earned, while the marginal tax rate is the tax rate on the last dollar earned. An increase in the average tax rate reduces the net income workers receive from work, making leisure time relatively more expensive, and thereby increasing the incentive to work. On the other hand, an increase in the marginal tax rate reduces the income from each additional unit of work, making leisure relatively more attractive, and therefore decreasing the incentive to work. Hence, an increase in the marginal tax rate decreases labour supply.

What Is the Difference Between the Average and Marginal Tax