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Economics · Oct / Nov 2019 · Paper 13 · Question 18

2281Fiscal policy

The table shows tax paid at different income levels in an economy. | income level ($) | tax paid ($) | |---|---| | 5 000 | 500 | | 12 000 | 2400 | | 20 000 | 5000 | | 30 000 | 6000 | Which description of the tax system used is correct?

  1. Acontinually progressive
  2. Bprogressive then regressive
  3. Cproportional
  4. Dregressive then progressive

As printed in the paper

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Correct answer: B. progressive then regressive

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