AI-generated, not reviewedHL only4 marks, command term Calculate
The figures are invented. A country has a goods and services tax of 20% on all spending. Household L has an annual income of $24,000 and spends $18,000 (before tax) on goods and services. Household H has an annual income of $120,000 and spends $60,000 (before tax). (i) Calculate the indirect tax paid by each household. [2] (ii) Calculate the indirect tax paid by each household as a percentage of its income. [2]
HL Paper 3-style calculation (standalone practice; not an IB question).