Economics 9708 · AS & A Level · Short-run costs

Short-run costs — practice question

Changes in fiscal policy can influence how income and wealth are distributed. Which combination of fiscal policy would be most likely to be regressive?

  • Aa fall in the lowest level of income when income tax has to be paid and a fall in the rate of inheritance tax
  • Ba fall in the charge made for visits to a doctor and a rise in the level of unemployment benefit
  • Ca rise in the rate of income tax charged at higher levels of income and a rise in the standard rate of corporation tax
  • Da rise in the standard rate of income tax and a fall in the standard rate of goods and services tax

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