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## Suppose the tax rate on the first \$10,000 income is 0; 10 percent on the next \$20,000; 20 percent on the next \$20,000; 30 percent on the next \$30,000; and 40 percent on any income over \$80,000. Family A has income of \$40,000 and Family B has income of \$100,000. What is the marginal and average tax rate for each family? Question 10 options:Family A: marginal20 percent; average10 percent; Family B: marginal40 percent; average23 percent.Family A: marginal20 percent; average20 percent; Family B: marginal40 percent; average40 percent.Family A: marginal20 percent; average15 percent; Family B: marginal40 percent; average20 percent.Family A: marginal10 percent; average10 percent; Family B: marginal30 percent; average30 percent.Save

Suppose the tax rate on the first \$10,000 income is 0; 10 percent on the next \$20,000; 20 percent on the next \$20,000; 30 percent on the next \$30,000; and 40 percent on any income over \$80,000. Family A has income of \$40,000 and Family B has income of \$100,000. What is the marginal and average tax rate for each family? Question 10 options:Family A: marginal20 percent; average10 percent; Family B: marginal40 percent; average23 percent.Family A: marginal20 percent; average20 percent; Family B: marginal40 percent; average40 percent.Family A: marginal20 percent; average15 percent; Family B: marginal40 percent; average20 percent.Family A: marginal10 percent; average10 percent; Family B: marginal30 percent; average30 percent.Save

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