Answer
A
Work Step by Step
Only 30,000 of the 50,000 is taxed, so to calculate the average tax rate we do $\frac{30000}{50000}*25=15$
The marginal tax rate will just be 25% since each additional dollar will be taxed at 25%
Principles of Microeconomics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516590X
ISBN 13:
978-1-28516-590-5
Chapter 12 - Part IV - The Design of the Tax System - Quick Check Multiple Choice - Page 254: 3
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