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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2017 · Q161 Mark

When is a tax progressive?

Awhen some goods have a higher tax than others
Bwhen the rate of tax increases as income increases
Cwhen the tax is linked to the rate of inflation
Dwhen the tax is on incomes rather than on goods or services

✓ Correct answer

B: when the rate of tax increases as income increases

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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, May/June 2017 Paper 1 Variant 1, question 16.

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