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Economic policy objectives

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Question 36

The table below shows the progressive income tax system of Valeria:

Annual Income (Valerian dollars – VVV)Tax Rate (%)
0 to 20,00020,00020,0000.0
20,001 20,001\,20,001 to 50,00050,00050,00015.0
50,001 50,001\,50,001 to 90,00090,00090,00025.0
90,001 90,001\,90,001 to 150,000150,000150,00035.0
150,001 150,001\,150,001 and above45.0

What is the marginal tax rate for an individual who receives a pay rise of 12,000 V 12,000\ V\,12,000 V having initially earned 85,000 V85,000\ V85,000 V?

25.0%25.0\%25.0%

30.8%30.8\%30.8%

35.0%35.0\%35.0%

17.5%17.5\%17.5%

Economic policy objectives Questions

  1. A Level
  2. /Economics
  3. /Economic policy objectives