WAEC Economics 2016 Objective — Question 40

Question 40 of 50 from the West African Examinations Council (WAEC) Economics 2016 Objective paper, with the correct answer and a full explanation.

40. Indirect taxes are generally (a) progressive (b) regressive (c) equitable (d) proportionate

A. progressive
B. regressiveCorrect
C. equitable
D. proportionate

Explanation

Indirect tax is regressive because the rate paid as tax, by consumers, decreases as income increases; the poor pay a higher proportion of income in tax than the rich.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Economics 2016 Objective More Economics past papers