Economics 9708 · AS & A Level · Short-run costs

Short-run costs — practice question

What is meant by a regressive tax?

  • Alow income earners pay a higher proportion of their income in tax than high income earners
  • Bmarginal tax rates exceed average tax rates
  • Cthe cost of collecting the tax exceeds the revenue raised
  • Dthe marginal rate of tax is higher for high income earners than for low income earners

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