Use the graph below to answer the question. The curve labelled W shows the
ECONOMICS
WAEC 2023
Use the graph below to answer the question. The curve labelled W shows the
- A. regressive tax
- B. proportional tax
- C. specific tax
- D. progressive tax
Correct Answer: D. progressive tax
Explanation
A progressive tax is a tax system in which the tax rate increases as the amount of taxable income increases. This means that people with higher incomes pay a higher percentage of their income in taxes than people with lower incomes.
The curve labeled W shows that the tax rate increases as the amount of taxable income increases. This is the defining characteristic of a progressive tax system.
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