Three types of tax are listed. • a sales tax (VAT) on fuel • a specific tax of 10% on cigarettes • the percentage of income tax on individual earnings increases as taxable income increases Which combination describes the effect of each of these types of tax? [Figure 17]
✓ Correct Answer
The correct answer is D: VAT: regressive, specific tax: regressive, income tax: progressive
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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