O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2016 · Q171 Mark

A government fixes the rate of income tax at $0.20 per dollar earned. What describes this type of taxation?

Aindirect

Bprogressive

Cproportional

Dregressive

✓ Correct answer

C: proportional

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Topic: Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2016 Paper 1 Variant 2, question 17.

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