Nancy paid a tax of $0.50 on the last dollar she earned in 1999. Nancy's marginal tax rate in 1999 was
A)more than 50 percent.
B)exactly 50 percent.
C)higher than her average tax rate.
D)lower than her average tax rate.

Question

Quizplus · Accepted Answer

The marginal tax rate is the tax rate applied to the last dollar earned. Since Nancy paid $0.50 on the last dollar she earned, her marginal tax rate was exactly 50 percent.

Nancy Paid a Tax of $0