2
QuizMultiple Choice

Fiscal Policy: Taxes — Quiz

Question 2 • Economics

Which of these best describes income tax?

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

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