14
QuizMultiple Choice

5.1 Fiscal Policy: Taxes

Question 14 • IL-Economics

How are progressive taxes and regressive taxes similar?

Answer
A
Both charge high-income individuals more.
B
Both are considered flat taxes.
C
Both generate revenue for public services.
D
Both are types of indirect taxes.

Explanation

Both progressive and regressive taxes collect money that governments can use to fund public services. A progressive tax takes a larger share of income from higher earners, while a regressive tax takes a larger share from lower earners, so they do not affect income groups in the same way.

AI-written and checked against the verified answer.

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