Multiple choice

Which of the following taxes are included in prices?

  1. Direct taxes

  2. Indirect taxes

  3. Progressive taxes

  4. Regressive taxes
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 An indirect tax is a tax that increases the price of goods so that consumers are actually paying the tax by paying more for the products. An indirect tax is most often thought of as a tax that is shifted from one taxpayer to another, by way of an increase in the price of the goods.

Keep practicing — related questions