10. Understanding marginal and average tax rates Using the information provided on the income tax systems in two hypothetical countries, Country A and Country B, complete the following tables. Country A Country B Тax Liablity (Dollars) $1.000 Taxable Income Tax Liability Taxable Income (Dollars) 20,000 (Dollars) 2,000.00 (Dollars) 20,000 40,000 4,000.00 40,000 $4,000 60,000 6,000.00 60,000 $12.000 Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. Taxable Income Range Country A Marginal Tax Rate Country B Marginal Tax Rate (Percent) (Dollars) 20,000 to 40,000 (Percent) 40,000 to 60,000 Complete the following table by deriving the average tax rates at each income level for each country. Taxable Income Country A Average Tax Rate Country B Average Tax Rate (Dollars) (Percent) (Percent) 20.000 40,000 60,000

10. Understanding marginal and average tax rates Using the information provided on the income tax systems in two hypothetical countries, Country A and Country B, complete the following tables. Country A Country B Тax Liablity (Dollars) $1.000 Taxable Income Tax Liability Taxable Income (Dollars) 20,000 (Dollars) 2,000.00 (Dollars) 20,000 40,000 4,000.00 40,000 $4,000 60,000 6,000.00 60,000 $12.000 Complete the following table by deriving the marginal tax rates in the income ranges of $20,000 to $40,000 and $40,000 to $60,000 for each country. Taxable Income Range Country A Marginal Tax Rate Country B Marginal Tax Rate (Percent) (Dollars) 20,000 to 40,000 (Percent) 40,000 to 60,000 Complete the following table by deriving the average tax rates at each income level for each country. Taxable Income Country A Average Tax Rate Country B Average Tax Rate (Dollars) (Percent) (Percent) 20.000 40,000 60,000

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 20RQ: What is indexing?

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