12
QuizMultiple Choice

Fiscal Policy: Taxes — Quiz

Question 12 • Economics

Which of these best describes income tax?

Answer
A
direct tax
B
proportional tax
C
regressive tax
D
indirect tax

Explanation

Income tax is taken directly from a person's income and paid to the government by that person, so it is a direct tax. An indirect tax, by contrast, is added to the price of goods or services, such as sales tax.

AI-written and checked against the verified answer.

Previous
Next