Question

Typically, the average tax rate for a person is ________ his or her marginal tax rate, because the marginal tax rate applies to ________.

below; all income

below; the first dollars taxed but not to all income

below; the last dollars taxed but not to all income

above; the last dollars taxed but not to all income

above; the first dollars taxed but not to all income

Answer 1

below; the last dollars taxed but not to all income

Explanation: Marginal tax rate is the tax rate applied on the last dollar earned.