The curve labeled III illustrate a system of taxation

  • A regressive tax
  • B progressive tax
  • C value added tax
  • D proportional tax
jamb 2015economics

The correct answer is A. regressive tax

A regressive tax falls as incomes increases while progressive tax rises as income increases. Proportional tax is a flat rate while value added tax is the tax imposed on goods and services at each stage of production.

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