Question on: JAMB Economics - 2015

The curve labeled III illustrate a system of taxation
A
regressive tax
B
progressive tax
C
value added tax
D
proportional tax
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Correct Option: A
The curve labeled III illustrates a regressive tax system. In a regressive tax system, the tax rate decreases as the income increases. This means that lower-income earners pay a higher percentage of their income in taxes compared to higher-income earners.

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