passwella.
Menu

JAMB Economics 1994 Question 40

Question 40

Public Finance

Progressive tax structure is designed to

  1. A.take more from the income of the poor
  2. B.take more from the income of the rich
  3. C.take equal proportion of income from both the rich and the poor
  4. D.reduce the problems emanating from tax imposition
Show the answer and explanation

Answer: B (take more from the income of the rich)

Explanation

Under a progressive tax the rate rises with income, so the rich pay a larger share.