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WAEC Economics 2011 Objective — Question 40

Question 40 of 50 from the West African Examinations Council (WAEC) Economics 2011 Objective paper, with the correct answer and a full explanation.

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One disadvantage of direct taxes is that they

  • A. A. allocate scarce resources
  • B. B. are not rigid
  • C. C. can be progressive
  • D. D. can be evadedCorrect

Explanation

One major disadvantage of direct tax is that it can be evaded, meanwhile indirect taxes cannot be evaded since they are not levied on people's income or property but on goods and services which people pay unconsciously or unaware.

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