As an attempt to raise funds for his evil schemes, Bowser charges an income tax on his Koopa
soldiers. The table below shows the marginal tax rate the soldiers face. Use this information for
the following 3 questions.
Income Range ($)
Marginal Tax Rate
0-10,000
20%
10,000-20,000
30%
20,000-30,000
50%
Above 30,000
80%
5. (Koopa Taxes) A Koopa soldier with an income of $40,000 has a mean tax rate of
a. 15%
b. 30%
c. 45%
d. 50%
6. (Koopa Taxes) A Koopa soldier is making $25,000 in income and gets a raise of $10,000.
Which of the following is true?
a. She now has a higher marginal tax rate.
b. She now has a higher mean tax rate.
c. Both (a) and (b).
d. Neither (a) nor (b).
7. (Koopa Taxes) A Koopa solder is making $25,000 in income and gets a raise of $10,000.
How much of her raise does she get to keep after taxes?
a. $2,000
b. $3,500
c. $5,000
d. $4,500