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2.1 Introduction to the national economy

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Question 50

Which statement correctly distinguishes a direct tax from an indirect tax?

[1]
A

A direct tax is charged on income or profit, while an indirect tax is charged on spending

B

A direct tax is paid only by firms, while an indirect tax is paid only by households

C

A direct tax is progressive, while every indirect tax is proportional

D

A direct tax raises revenue, while an indirect tax finances spending

Markscheme

2.1 Introduction to the national economy Questions

  1. GCSE
  2. /Economics
  3. /2.1 Introduction to the national economy

75 exam-style questions on AQA GCSE Economics 2.1 Introduction to the national economy, covering 2.1.1a What an interest rate is, 2.1.1b Interest rates and consumer decisions, 2.1.1c Interest rates, producer decisions and calculations, 2.1.2a UK government revenue and spending, and 2.1.2b Direct, indirect and progressive taxation. Each one has a worked solution and a mark scheme showing where the marks go.

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