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JAMB Economics 2003 Question 34

Question 34

Public Finance

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

  1. A.lower income group
  2. B.higher income group
  3. C.contract workers
  4. D.newly recruited workers
Show the answer and explanation

Answer: A (lower income group)

Explanation

Poor people spend a larger share of their income on essential goods, so taxes on them fall more heavily on the lower income group.