A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2022 · Q171 Mark

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]

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AVAT: progressive, specific tax: progressive, income tax: regressive

BVAT: progressive, specific tax: regressive, income tax: progressive

CVAT: regressive, specific tax: progressive, income tax: regressive

DVAT: regressive, specific tax: regressive, income tax: progressive

✓ Correct answer

D: VAT: regressive, specific tax: regressive, income tax: progressive

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Topic: Government microeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2022 Paper 1 Variant 2, question 17.

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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

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