passwella.
Menu

JAMB Economics 1983 Question 27

Question 27

Public Finance

A greater burden of the taxes on essential goods is borne by the

  1. A.middle income group
  2. B.higher income group
  3. C.lower income group
  4. D.people falling between the middle and higher income groups
  5. E.top few richest people of the country.
Show the answer and explanation

Answer: C (lower income group)

Explanation

Poor people spend a larger share of their income on essentials, so such taxes take a bigger share of their income (they are regressive).