Nguyen is a single mother who earns $20,000 per year. She receives $3,600 per year in in-kind transfers and a $600 earned income tax credit. If her earned income rises to $25,000, she will lose the tax credit and $1,900 of her in-kind transfer benefits. What is Nguyen's effective marginal tax? 10.0% 12.5% 50.0% 59.5%

Nguyen is a single mother who earns $20,000 per year. She receives $3,600 per year in in-kind transfers and a $600 earned income tax credit. If her earned income rises to $25,000, she will lose the tax credit and $1,900 of her in-kind transfer benefits. What is Nguyen's effective marginal tax? 10.0% 12.5% 50.0% 59.5%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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