Whichofthefollowingstatementsis(are)correct?(x) A person’s tax liability refers to the amount of tax a person receives from the government.(y) The average tax rate measures the fraction of income paid in taxes and the marginal tax rate measuresthe incremental rate of tax on income.(z) If your income is $40,000 and your income tax liability is $8,000, then your average tax rate is 20 percentbut your marginal tax rate may be equal to, greater than or less than 20 percent(x), (y) and (z)(x) and (y) only(x) and (z) only(y) and (z) only(y) only

In an economy, government imposes tax on the people based on their income level and this tax is…

Answered: Whichofthefollowingstatementsis(are)cor…

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 3.10P

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Whichofthefollowingstatementsis(are)correct?
1. (x) A person’s tax liability refers to the amount of tax a person receives from the government.
2. (y) The average tax rate measures the fraction of income paid in taxes and the marginal tax rate measures
  
  the incremental rate of tax on income.
3. (z) If your income is $40,000 and your income tax liability is $8,000, then your average tax rate is 20 percent
  
  but your marginal tax rate may be equal to, greater than or less than 20 percent
1. (x), (y) and (z)
2. (x) and (y) only
3. (x) and (z) only
4. (y) and (z) only
5. (y) only

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