Q. If with the increase in income, the percentage of income collected as tax remains constant, tax will be called
✅ Correct Answer: (C)
proportional
Public Finance MCQs and Notes
Q. A forward-shifted tax will affect
✅ Correct Answer: (A)
buyers more than sellers
Q. A progressive income tax implies that
✅ Correct Answer: (B)
the rate of rises with a rise in income