Economics · May / June 2016 · Paper 11 · Question 18
2281Fiscal policy
A government decides to make two changes to its taxation policies. It lowers the tax on petrol and raises the tax on food. How do these changes affect the regressive nature of the taxes?
- Aless regressive / less regressive
- Bless regressive / more regressive
- Cmore regressive / less regressive
- Dmore regressive / more regressive
As printed in the paper
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Correct answer: B. less regressive / more regressive
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