Economics · Oct / Nov 2017 · Paper 12 · Question 17

The government introduces a new tax. It adds $1 to the price of every $10 good and $2 to the price of every $20 good. What can be concluded about the nature of this tax? | | it is a direct tax | it is a specific tax | it is a progressive tax | | A | no | no | no | | B | no | no | yes | | C | yes | yes | no | | D | yes | yes | yes |

1. Ano / no / no
2. Bno / no / yes
3. Cyes / yes / no
4. Dyes / yes / yes

As printed in the paper