WAEC Economics 2015 Theory — Question 4

Question 4 of 22 from the West African Examinations Council (WAEC) Economics 2015 Theory paper, with the correct answer and a full explanation.

2(c). Give reasons for your answer in 2(b).

Model answer

This is because the tax rate decreases as income increases (and correspondingly increases as income decreases) - which is the defining characteristic of a regressive tax system, as shown by the falling tax-rate curve against rising income.

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