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Aplia Homework #9 Chapter 10 and Chapter 11 combined
The following table shows income tax rates in Econoland.
Annual Income
Tax Rate
Up to $60,000
10%
From $50,001 to $90,000
20%
Over $90,000
30%
This is an example of a
Income tax.
Manuel, a resident of Econoland, currently works 20 hours a week and earns an annual income of $60,000. After paying Income taxes, Manuel
receives
per year.
If Manuel works an additional 10 hours a week (30 hours a week total), his annual income will be $90,000. After paying income taxes, Manuel will
receive
per year. In other words, by working an additional 10 hours per week, Manuel will receive an additional
If Manuel works 10 more hours in a week (40 hours a week total), his annual income will further increase to $120,000. After paying income taxes,
Manuel will receive
per year. In other words, by working 10 more hours per week. Manuel will receive
what he would receive if he works only 30 hours a week.
As Manuel works more, the additional amount he receives from working 10 mare hours
more than
which means his cost of
