Question on: JAMB Economics - 2020
The relationship between tax rate and income which is relevant to a proportional tax is depicted by?
A
curve Z and Y
B
curve X
C
curve Z
D
curve Y
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Correct Option: C
The question is asking about the relationship between tax rate and income in a proportional tax system. A proportional tax means the tax rate remains constant as income changes.
* **Curve X:** Represents a constant tax rate, regardless of income level. This accurately depicts a proportional tax.
* **Curves Y and Z:** Likely represent progressive or regressive tax systems, where the tax rate changes with income.
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