13. A taxpayer faces the following tax rates on her income:

20 percent of the first $40,000 of her income;

30 percent of all her income above $40,000.

Refer to Scenario 12-4. The taxpayer faces a marginal tax rate of

A)	20 percent when her income rises from $40,000 to $40,001.

B)	20 percent when her income rises from $30,000 to $30,001.

C)	0 percent when her income rises from $30,000 to $30,001.

D)	10 percent when her income rises from $40,000 to $40,001.

14. Scenario 12-4 A taxpayer faces the following tax rates on her income:

20 percent of the first $40,000 of her income;

30 percent of all her income above $40,000.

The taxpayer faces

A)	an average tax rate of 22.5 percent when her income is $30,000.

B)	an average tax rate of 22.0 percent when her income is $50,000.

C)	a marginal tax rate of 10 percent when her income rises from $40,000 to $40,001.

D)	a marginal tax rate of 50 percent when her income rises from $60,000 to $60,001.

15.

Income	Tax rate
$0 to $40,000	25%
$40,000 to $100,000	40%
Over $100,000	60%

Refer to Table 12-4. What is the marginal tax rate for a person who makes $130,000?

A)

30%

B)

40%

C)

50%

D)

60%

16. Table 12-4

Income	Tax rate
$0 to $40,000	25%
$40,000 to $100,000	40%
Over $100,000	60%

Refer to Table 12-4. What is the average tax rate for a person who makes $130,000?

A)

30%

B)

40%

C)

50%

D)

60%

22. Table 12-20 The following table presents the total tax liability for an unmarried taxpayer under four different tax schedules for the income levels shown.

		Amount of Tax Due
Income	Tax Schedule A	Tax Schedule B	Tax Schedule C	Tax Schedule D
$50,000	$10,000	$20,000	$17,500	$15,000
$100,000	$30,000	$30,000	$25,000	$30,000
$200,000	$80,000	$40,000	$30,000	$60,000

Refer to Table 12-20. Which tax schedules are progressive?

A)Tax Schedule A only

B)Tax Schedule A and Tax Schedule B

C)Tax Schedule A, Tax Schedule B, and Tax Schedule C

D)All four Tax Schedules are progressive.

23. Table 12-20 The following table presents the total tax liability for an unmarried taxpayer under four different tax schedules for the income levels shown.

		Amount of Tax Due
Income	Tax Schedule A	Tax Schedule B	Tax Schedule C	Tax Schedule D
$50,000	$10,000	$20,000	$17,500	$15,000
$100,000	$30,000	$30,000	$25,000	$30,000
$200,000	$80,000	$40,000	$30,000	$60,000

Refer to Table 12-20. Which tax schedules are regressive?

A)	Tax Schedule A and Tax Schedule B

B)	Tax Schedule B and Tax Schedule C

C)	Tax Schedule C and Tax Schedule D

D)	None of the Tax Schedules are regressive.

24. Table 12-20 The following table presents the total tax liability for an unmarried taxpayer under four different tax schedules for the income levels shown.

		Amount of Tax Due
Income	Tax Schedule A	Tax Schedule B	Tax Schedule C	Tax Schedule D
$50,000	$10,000	$20,000	$17,500	$15,000
$100,000	$30,000	$30,000	$25,000	$30,000
$200,000	$80,000	$40,000	$30,000	$60,000

Refer to Table 12-20. Which tax schedules are proportional?

A)Tax Schedule B only

B)Tax Schedule B and Tax Schedule C

C)Tax Schedule D only

D)Tax Schedule A and Tax Schedule B

25. Table 12-20

The following table presents the total tax liability for an unmarried taxpayer under four different tax schedules for the income levels shown.

		Amount of Tax Due
Income	Tax Schedule A	Tax Schedule B	Tax Schedule C	Tax Schedule D
$50,000	$10,000	$20,000	$17,500	$15,000
$100,000	$30,000	$30,000	$25,000	$30,000
$200,000	$80,000	$40,000	$30,000	$60,000

Refer to Table 12-20. Which tax schedule could be considered a lump-sum tax?

A)Tax Schedule B only

B)Tax Schedule B and Tax Schedule C

C)Tax Schedule D only

D) None of the tax schedules could be considered a lump-sum tax.