Suppose George made $20,000 last year and that he lives in the country of Harmony. The way Harmony levies income taxes, each citizen must pay 10 percent in taxes on their first $10,000 in earnings and then 50 percent in taxes on anything else they might earn. So given that George earned $20,000 last year, his marginal tax rate on the last dollar he earns will be __________ and his average tax rate for his entire income will be _________________.                                  a. 50 percent; 50 percent.                   b. 50 percent; less than 50 percent. c. 10 percent; 50 percent.                           d. 10 percent; less than 50 percent.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose George made $20,000 last year and that he lives in the country of Harmony. The way Harmony levies income taxes, each citizen must pay 10 percent in taxes on their first $10,000 in earnings and then 50 percent in taxes on anything else they might earn. So given that George earned $20,000 last year, his marginal tax rate on the last dollar he earns will be __________ and his average tax rate for his entire income will be _________________.                                  a. 50 percent; 50 percent.                   b. 50 percent; less than 50 percent. c. 10 percent; 50 percent.                           d. 10 percent; less than 50 percent.

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