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Economics · Oct / Nov 2020 · Paper 12 · Question 18

2281Fiscal policy

The table shows the tax that an individual would pay at different levels of disposable income. | disposable income ($) | 10 000 | 20 000 | 30 000 | 40 000 | |---|---|---|---|---| | tax ($) | 0 | 2000 | 4000 | 6000 | Which type of tax is shown in the table?

  1. Acorporation tax
  2. Bindirect tax
  3. Cprogressive tax
  4. Dregressive tax

As printed in the paper

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Correct answer: C. progressive tax

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