WAEC Economics 2020 Objective — Question 41
Question 41 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.
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Mr. X and Mrs. Y pay $500.00 and $1,400.00 as taxes on their earnings of $5,000.00 and $7,000.00 respectively. The system of taxation employed is
- A. specific tax
- B. proportional tax
- C. regressive tax
- D. progressive taxCorrect
Explanation
Mr X pays 500/5000=10%, while Mrs Y pays 1400/7000=20% — the tax rate increases as income increases, which is a progressive tax system.
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