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Question
Correct Answer
Your Answer
With the initial incomes of 50, 80 and 110. Suppose that the three group members chose income-tax rates of 0%, 0%, and 0%. Using the table provided, what would be the after-tax incomes of the three group members?
50, 80, 110
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Explanation: The income-tax rate that is implemented is the median (middle) one chosen -- in this case 0%. From the table provided, we see that if the tax rate is 0%, the final after-tax incomes are 50, 80 and 110.
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