Economics (AS & A Level) · Oct / Nov 2023 · Paper 11 · Question 15

The table shows the tax an individual would pay at different levels of income. | annual income ($) | tax paid ($) | |---|---| | 20 000 | 1 000 | | 30 000 | 3 000 | | 40 000 | 6 000 | | 50 000 | 8 000 | | 60 000 | 12 000 | What is the average rate of taxation and the marginal rate of taxation for an individual with an annual income of $50 000?

1. Aaverage rate of taxation 15%, marginal rate of taxation 16%
2. Baverage rate of taxation 16%, marginal rate of taxation 20%
3. Caverage rate of taxation 16%, marginal rate of taxation 28%
4. Daverage rate of taxation 20%, marginal rate of taxation 20%

As printed in the paper