Multiple choice

If the rate of tax increases with the higher level of income, it is called _______.

  1. proportional tax

  2. regressive tax

  3. lump sum tax

  4. progressive tax

  5. none of these

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Yes, it is the right answer. If the tax rate increases with the higher level of income, it is called progressive tax.