What Is the Difference Between the Average and Marginal Tax

Multiple Choice

What is the difference between the average and marginal tax rates' effects on the labour supply?

A) An increase in the average tax rate will increase labour supply,but an increase in the marginal tax rate will decrease labour supply.
B) An increase in the average tax rate will decrease labour supply,but a decrease in the marginal tax rate will decrease labour supply.
C) There is no difference.An increase in the average tax rate and the marginal tax rate will increase labour supply.
D) There is no difference.An increase in the average tax rate and the marginal tax rate will decrease labour supply.