O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2016 · Q181 Mark
A government decides to make two changes to its taxation policies. It lowers the tax on petrol and raises the tax on food. How do these changes affect the regressive nature of the taxes?
Aless regressive, less regressive
Bless regressive, more regressive
Cmore regressive, less regressive
Dmore regressive, more regressive
✓ Correct answer
B: less regressive, more regressive
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