A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2025 · Q231 Mark

An income tax has a tax-free allowance of $10000 and a single rate of 25%. What type of tax is this?

Aindirect

Bprogressive

Cproportional

Dregressive

✓ Correct answer

B: progressive

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Topic: Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2025 Paper 1 Variant 2, question 23.

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