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

Short-run costs — practice question

Which combination of tax reforms is most likely to be regressive in a developed economy?

  • Aincreasing the rate of wealth tax and raising the rate of sales tax (VAT) on luxury products
  • Bintroducing a tax on owning property based on its sales value and increasing the rate of income tax
  • Creducing the basic rate of income tax and increasing the duty on fuel
  • Dremoving the tax-free allowance for income tax and extending sales tax (VAT) to include all food

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