Economics 2281 · O Level · Fiscal policy

Fiscal policy — practice question

The table indicates how the tax paid changes as income increases in four countries, A-D. Which country uses a progressive tax?

  • ATax paid rises proportionally with income.
  • BTax paid rises more than proportionally with income.
  • CTax paid rises less than proportionally with income.
  • DTax paid rises at a decreasing rate as income increases.

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