The table below shows the progressive income tax system of Valeria:
| Annual Income (Valerian dollars – VVV) | Tax Rate (%) |
|---|---|
| 0 to 20,00020,00020,000 | 0.0 |
| 20,001 20,001\,20,001 to 50,00050,00050,000 | 15.0 |
| 50,001 50,001\,50,001 to 90,00090,00090,000 | 25.0 |
| 90,001 90,001\,90,001 to 150,000150,000150,000 | 35.0 |
| 150,001 150,001\,150,001 and above | 45.0 |
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%
37 exam-style questions on OCR A Level Economics Income distribution and welfare. Each one has a worked solution and a mark scheme showing where the marks go.