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WAEC Economics 1995 Question 30

Question 30

Public Finance

A tax whose rate increases as income increases is

  1. A.an indirect tax
  2. B.a progressive tax
  3. C.a regressive tax
  4. D.a direct tax
  5. E.a proportional tax
Show the answer and explanation

Answer: B (a progressive tax)

Explanation

Under a progressive tax, the rate rises as income rises.