Suppose a tax is such that an individual with an income of $10,000 pays $2,500 of tax, a person with an income of $20,000 pays $5,000 of tax, a person with an income of $30,000 pays $7,500 of tax, and so forth. Instructions: Enter your answers rounded to 1 decimal place. a. What is each person's average tax rate? Income Таx Paid Average Tax Rate $ 10,000 $ 2,500 20,000 5,000 30,000 7,500 %
Suppose a tax is such that an individual with an income of $10,000 pays $2,500 of tax, a person with an income of $20,000 pays $5,000 of tax, a person with an income of $30,000 pays $7,500 of tax, and so forth. Instructions: Enter your answers rounded to 1 decimal place. a. What is each person's average tax rate? Income Таx Paid Average Tax Rate $ 10,000 $ 2,500 20,000 5,000 30,000 7,500 %
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Design Of The Tax System
Section: Chapter Questions
Problem 2PA
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![Suppose a tax is such that an individual with an income of $10,000 pays $2,500 of tax, a person with an income of $20,000 pays
$5,000 of tax, a person with an income of $30,000 pays $7,500 of tax, and so forth.
Instructions: Enter your answers rounded to 1 decimal place.
a. What is each person's average tax rate?
Income
Таx Paid
Average Tax Rate
$ 10,000
$ 2,500
%
20,000
5,000
30,000
7,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c33e07c-8694-4e34-ac4f-8e0baded1561%2Fe74ef26b-d0a3-46b7-8cd3-51042b4ccba8%2Fnnktba_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose a tax is such that an individual with an income of $10,000 pays $2,500 of tax, a person with an income of $20,000 pays
$5,000 of tax, a person with an income of $30,000 pays $7,500 of tax, and so forth.
Instructions: Enter your answers rounded to 1 decimal place.
a. What is each person's average tax rate?
Income
Таx Paid
Average Tax Rate
$ 10,000
$ 2,500
%
20,000
5,000
30,000
7,500
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