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- Subject
- Fiscal And Monetary Policyeconomics-mcqs › fiscal-and-monetary-policy
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
If the marginal tax rate is 40% and an individual's income rises from Rs 10,000 to Rs 12,000, what will be the total tax amount paid?
Multiple choice question for Fiscal And Monetary Policy. Select an option, then review the explanation below.
Explanation
Since the marginal tax rate is 40%, the total tax on an income of Rs 12,000 is 40% of 12,000, which equals Rs 4,800. Therefore, the total tax paid amounts to Rs 4,800.
More Fiscal And Monetary Policy MCQs
Practice related questions from the same subject.
- 1.Why might a government impose taxes on certain goods or services?
- 2.Which statement accurately describes a regressive tax system?
- 3.What is the automatic effect on the government's budget balance when the economy experiences growth?
- 4.Which of the following actions aligns with a reflationary (expansionary) fiscal policy?
- 5.What does over-funding mean in the context of the State Bank of Pakistan's actions?