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O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2017 · Q191 Mark

A worker earns $40000 a year and pays 20% income tax. He spends $5000 on electrical goods and $10000 on a car, and pays 20% sales tax on each. How much indirect tax does he pay?

A$3000
B$5000
C$8000
D$11000

✓ Correct answer

A: $3000

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2017 Paper 1 Variant 2, question 19.

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