WAEC Economics 2026 Question 18

Question 18

Public Finance

In a country where an income tax of $100 was levied on an income of $1000 while an income of $5000 attracted a levy of $500, the tax system can be said to be

  1. A.regressive
  2. B.flexible
  3. C.progressive
  4. D.proportional
Show the answer and explanation

Answer: D (proportional)

Explanation

Both pay 10% of income: proportional.