Economics (AS & A Level) · May / June 2026 · Paper 13 · Question 14

The income tax structure of a country has two elements. 1 The first $20000 of earned income is not taxed. 2 Any income earned above $20000 is taxed at 20%. What would be a correct description of this tax structure?

1. AIt is a progressive tax structure.
2. BIt is a proportional tax structure.
3. CIt is a regressive tax structure.
4. DThe average rate of taxation decreases as incomes increase.

As printed in the paper