The table below shows three different tax systems ( $P$ , $Q$ , and $R$ ) and the amount of tax paid by households at different annual income levels.

Household Income (£)	Tax $P$ (£)	Tax $Q$ (£)	Tax $R$ (£)
20,000	1,000	2,000	3,000
40,000	3,000	4,000	4,800
80,000	8,000	8,000	6,400

Which one of the following statements is correct?

Tax $P$ is a proportional tax and Tax $R$ is a regressive tax

Tax $P$ is a progressive tax and Tax $Q$ is a proportional tax

Tax $Q$ is a progressive tax and Tax $R$ is a regressive tax

Tax $P$ is a regressive tax and Tax $R$ is a progressive tax

The table below shows three different tax systems ( $P$ , $Q$ , and $R$ ) and the amount of tax paid by households at different annual income levels.

Household Income (£)	Tax $P$ (£)	Tax $Q$ (£)	Tax $R$ (£)
20,000	1,000	2,000	3,000
40,000	3,000	4,000	4,800
80,000	8,000	8,000	6,400

Which one of the following statements is correct?

Tax $P$ is a proportional tax and Tax $R$ is a regressive tax

Tax $P$ is a progressive tax and Tax $Q$ is a proportional tax

Tax $Q$ is a progressive tax and Tax $R$ is a regressive tax

Tax $P$ is a regressive tax and Tax $R$ is a progressive tax

2.5 Fiscal policy and supply-side policies

2.5 Fiscal policy and supply-side policies Questions