Economics 0455 · IGCSE · The role of government

The role of government — practice question

A government chooses to introduce two alterations to its taxation policy. It cuts the tax on petrol and increases the tax on food. How will these alterations influence the regressive character of the taxes?

  • Alower petrol tax: less regressive; higher food tax: less regressive
  • Blower petrol tax: less regressive; higher food tax: more regressive
  • Clower petrol tax: more regressive; higher food tax: less regressive
  • Dlower petrol tax: more regressive; higher food tax: more regressive

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