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Income distribution and welfare

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Question 23

The table shows the annual gross income and the total income tax paid by individuals in a newly formed economy at different income thresholds.

Annual Gross IncomeTotal Income Tax Paid
£25,000£2,000
£35,000£3,500
£45,000£6,000
£65,000£13,000
£85,000£22,000

What is the marginal tax rate when an individual's annual gross income increases from £45,000 to £65,000?

20.0%20.0\%20.0%

35.0%35.0\%35.0%

45.0%45.0\%45.0%

70.0%70.0\%70.0%

Income distribution and welfare Questions

  1. A Level
  2. /Economics
  3. /Income distribution and welfare