What is the average tax rate of an individual

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Total Income Tax Liability
$500 $50
$1,000 $120
$1,500 $225
$2,000 $380
$2,500 $600

The table above shows tax liabilities associated with various income levels under a hypothetical tax system.

1. What is the average tax rate of an individual with $1,000 in total income?

2. When assessing how progressive a tax system is, one measure we consider is the change in the average tax rate as a percent of the change in income. Based on the table above, what value does that measure of progressiveness take on when income increases from $500 to $1,000?

Reference no: EM133246876

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