Question

(2 of 6)
using the table below, answer the question that follows the table:

income\ttax
$10,000\t$1,000
20,000\t4,000
30,000\t9,000

the \marginal tax rate\ in going from $10, 000 to $20,000 of income is ______.

○ 10%
○ 20%
○ 30%
○ 50%

Explanation:

Step1: Calculate change in tax

Change in tax = $4000 - $1000 = $3000

Step2: Calculate change in income

Change in income = $20000 - $10000 = $10000

Step3: Calculate marginal tax rate

Marginal tax rate = $\frac{\text{Change in Tax}}{\text{Change in Income}} \times 100\%$ = $\frac{3000}{10000} \times 100\%$ = 30%

Answer:

30% (corresponding to the option "30%")