Economics Multiple Choice Question – 24 April 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

The table shows the amount of direct tax paid by individuals at different levels of income in a country in the eurozone.

Table 56

Which of the following statements about the country’s direct tax system is true?

Select ONE answer:

  1. The system is progressive throughout the income range
  2. The system is proportional from €10 000 to €20 000 only
  3. The system is proportional throughout the income range
  4. The system is regressive from between €20 000 and €30 000

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 2

  1. Tax does indeed rise as income rises but this does not define a progressive system.
  2. Correct: The proportion of income taxed remains at ten percent.
  3. It is indeed proportional in the 10–20,000 range but not thereafter.
  4. Regressive means a lower proportion of tax as income rises. Here it is higher.

 

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