Question on: JAMB Economics - 2003
A greater burden of the taxes on essential goods is borne by the
A
lower income group
B
higher income group
C
contract workers
D
newly recruited workers
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Correct Option: A
The burden of taxes on essential goods disproportionately affects the lower income group.
* **Essential goods** such as food and basic necessities constitute a larger portion of the income of the lower income group.
* When taxes increase the price of these goods, it takes a larger chunk of their already limited income.
* The higher income group spends a smaller percentage of their income on essentials, so the tax increase has a lesser impact on their overall financial well-being.
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