When Ann's income increased from $100,000 to $120,000, her income tax payment increased from $22,000 to $30,000. Ann's average tax rate is and her marginal tax rate is OA. 25 percent; 25 percent OB. 40 percent; 25 percent OC. 40 percent; 40 percent OD. 25 percent; 40 percent

When Ann's income increased from $100,000 to $120,000, her income tax payment increased from $22,000 to $30,000. Ann's average tax rate is and her marginal tax rate is OA. 25 percent; 25 percent OB. 40 percent; 25 percent OC. 40 percent; 40 percent OD. 25 percent; 40 percent

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Design Of The Tax System

Section: Chapter Questions

Problem 3CQQ

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Question

When Ann's income increased from $100,000 to $120,000, her income tax payment increased from $22,000 to $30,000.
Ann's average tax rate is
and her marginal tax rate is
A. 25 percent; 25 percent
B. 40 percent; 25 percent
C. 40 percent; 40 percent
D. 25 percent; 40 percent

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