The marginal tax rate is ?

Related Mcqs:

1. If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?

   A. 30%
   B. 10%
   C. 70%
   D. 40%

2. If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

   A. be flat (horizontal)
   B. slope upward
   C. slope downward
   D. be U-shaped.

3. Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?

   A. Rs 50000
   B. 20%
   C. 25%
   D. Rs 10000

4. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

   A. indirect taxes
   B. direct taxes
   C. inelastic
   D. value-added tax

5. The marginal tax rate is ?

   A. the taxes paid by the marginal worker
   B. total income divided by total taxes paid
   C. the extra taxes paid on an additional unit of income
   D. total taxes paid divided by total income

6. The marginal rate of tax paid is ?

   A. The total tax paid / total income
   B. Total income / total tax paid
   C. Change in the tax paid / change in income
   D. Change in income / change in tax paid

7. If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?

   A. The amount of tax paid will increase by Rs4,800
   B. The amount of tax paid will increase by Rs4,000
   C. The amount of tax paid will increase by Rs 800
   D. The total tax paid will be Rs4,800

8. The appropriate tax rate to consider gauging how much the tax system distorts incentives and decision making is the ?

   A. Proportional tax rate
   B. average tax rate
   C. marginal tax rate
   D. vertical tax rate
   E. horizontal tax rate

9. The appropriate tax rate to consider judging the vertical equity of a tax system is the ?

   A. marginal tax rate
   B. average tax rate
   C. horizontal tax rate
   D. proportional tax rate

10. When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

    A. greater than average cost, greater than average cost
    B. less than average cost, greater than average cost
    C. less than average cost, less than average cost
    D. greater than average cost, less than average cost