Which type of tax takes a higher percentage from lower-income earners?

A Progressive tax

B Regressive tax

C Proportional tax

D Corporate tax

✓ Correct Answer: Option B

A regressive tax takes a larger percentage of income from lower-income earners (e.g., sales tax on essential goods).

💡 Why is B) the correct answer?

The correct answer to the question "Which type of tax takes a higher percentage from lower-income earners?" is Option B: Regressive tax.

The other options — A) Progressive tax, C) Proportional tax, D) Corporate tax — are incorrect for this General Knowledge question. As explained above: A regressive tax takes a larger percentage of income from lower-income earners (e.g., sales tax on essential goods).

📚 About This General Knowledge Practice Question

This 2-level General Knowledge question from the Capitals & Currencies topic is part of One Paper Preparation's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free General Knowledge practice test or use flashcards for spaced repetition review.

Practice General Knowledge Quizzes → Browse All Questions Study Flashcards

Which type of tax takes a higher percentage from lower-income earners?

✓ Correct Answer: Option B

📚 About This General Knowledge Practice Question

Related General Knowledge Questions