Eric earns a base salary of $50,000 as a shipwreck diver and is subject to the following hypothetical income tax bracket. Eric is considering taking on an additional dive that will increase his income by $5,000. In order for Eric to deem the dive worth his time, it must earn him $3,000 after taxes. Please round all answers to two decimal places. Income $0-$10,000 $10,001-$30,000 $30,001-$50,000 $50,001+ Tax rate 5% 10% 20% 50% What is the marginal tax rate associated with taking on this dive? What is Eric's average tax rate if the extra dive is accepted? Given the information, will Eric undertake this extra dive? yes no O need more information How much does Eric end up paying in taxes?

Eric earns a base salary of $50,000 as a shipwreck diver and is subject to the following hypothetical income tax bracket. Eric is considering taking on an additional dive that will increase his income by $5,000. In order for Eric to deem the dive worth his time, it must earn him $3,000 after taxes. Please round all answers to two decimal places. Income $0-$10,000 $10,001-$30,000 $30,001-$50,000 $50,001+ Tax rate 5% 10% 20% 50% What is the marginal tax rate associated with taking on this dive? What is Eric's average tax rate if the extra dive is accepted? Given the information, will Eric undertake this extra dive? yes no O need more information How much does Eric end up paying in taxes?

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter15: Income Inequality And Poverty

Section: Chapter Questions

Problem 7CQ

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