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JAMB Economics 1990 Question 35

Question 35

Public Finance

Use the figure (tax rate against income, curves X, Y and Z). The relationship between tax rate and income which is relevant to a progressive tax is shown by

Diagram for this question
  1. A.curve X
  2. B.curve Y
  3. C.curve Z
  4. D.curves X and Z
Show the answer and explanation

Answer: B (curve Y)

Explanation

Under a progressive tax the rate rises as income rises; curve Y slopes upward.