How is the average tax rate defined?

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Total taxes paid divided by total income earnedAdditional taxes owed on one more dollar of incomeTaxes paid by the individual earning the last dollarTotal income earned divided by the total taxes paid

Explanation

The average tax rate is calculated by dividing the total taxes paid by the total income. It represents the portion of income paid in taxes on average. Option B describes the marginal tax rate, option C refers to taxes paid by the marginal earner, and option D is an incorrect ratio.