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Income distribution and welfare

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Question 24

The table below shows the annual income tax paid by households in an economy at different levels of gross annual income.

Gross Annual IncomeTotal Income Tax Paid
£20,000£1,200
£35,000£3,900
£55,000£9,900
£80,000£19,900
£110,000£34,900

What is the marginal rate of income tax when an individual's gross annual income increases from £35,000 to £55,000?

11%11\%11%

18%18\%18%

30%30\%30%

40%40\%40%

Income distribution and welfare Questions

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