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Refer to Table 1, Which Shows the Tax Levels in an Economy

Question 49

Multiple Choice

Refer to table 1, which shows the tax levels in an economy. A person earning €12,000 pays income tax equal to ?
Table 1
 Band 1=0 to €10,000 No tax  Band 2=10,001 to €50,000 Taxed at 20% of earnings  Band 3=50,001 to €100,000 Taxed at 30% Band 4=100,001 and above  Taxed at 40%\begin{array}{|l|l|}\hline \text { Band } 1=€ 0 \text { to } € 10,000 & \text { No tax } \\\hline \text { Band } 2=€ 10,001 \text { to } € 50,000 & \text { Taxed at } 20 \% \text { of earnings } \\\hline \text { Band } 3=€ 50,001 \text { to } € 100,000 & \text { Taxed at } 30 \% \\\hline \text { Band } 4=€ 100,001 \text { and above } & \text { Taxed at } 40 \% \\\hline\end{array}
?


A) €0
B) €400
C) €2,000
D) €2,400

Correct Answer:

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