These are the short answer possibilities…I will put two on the exam worth ten points
each.
Be very detailed in your answer. Think beyond the basic question. Answer all
questions on your scantron. Show all work to respond fully !
1. “All average costs have a U-shaped curve.” Do you agree or disagree? Explain
why?
2. For the following situation find the marginal tax rate, average tax rate and total tax
liability:
Single filer
Earning $320,000
Single
Taxable Income
Tax Rate
$0—$9,275
10%
$9,276—$37,650
15%
$37,651—$91,150
25%
$91,151—$190,150
28%
$190,151—$ 413,350
33%
$413,351—$415,050
35%
$415,051 or more
39.6%