The _____ rate applies to an additional $1 of taxable income.

A) marginal tax
B) tax
C) total tax
D) lower tax

Question

The _____ rate applies to an additional $1 of taxable income.A) marginal taxB) taxC) total taxD) lower tax

Honey Joshi · Accepted Answer

Final Answer : A, Explanation :  Marginal tax rate applies to the additional dollar of taxable income. It is the tax rate on the last dollar earned and is used to determine the tax liability on additional income.

The _____ rate applies to an additional $1 of taxable income.

A) marginal tax
B) tax
C) total tax
D) lower tax

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Learning Objectives

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