Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

The graph compares an individual’s income before income tax is deducted with the income after income tax has been deducted. What is the marginal percentage rate of tax for the interval $0 to $10 000, and for $10 000 to $20 000?

  • A$0–$10 000: 0% / $10 000–$20 000: 12.5%
  • B$0–$10 000: 0% / $10 000–$20 000: 25.0%
  • C$0–$10 000: 1% / $10 000–$20 000: 12.5%
  • D$0–$10 000: 1% / $10 000–$20 000: 25.0%

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