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Economic management — Question 15

Original QCE Vault practice · 1 mark

Q15 · Practice questionSimple familiar1 mark

QUESTION 15

Two households pay the same $100 consumption tax. Their annual incomes are $20 000 and $100 000. Considering only these payments, the tax burden is

(A)
regressive as a share of income.
(B)
progressive as a share of income.
(C)
proportional as a share of income.
(D)
zero for the higher-income household.
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