Economics 9708 · AS & A Level · Fiscal policy

Fiscal policy — practice question

Individuals can decide how many hours they work, how much income they save and which goods and services they purchase. Which type of tax will not distort the choices people make?

  • Aa tax levied on the wealth accumulated by individuals
  • Ba uniform tax which raises the same fixed amount from all individuals
  • Cindirect taxes on specific goods
  • Dproportional income taxes

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