Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

Which pairing of policy changes would be most likely to shift income away from the richest households and towards the poorest households in an economy?

  • Aindirect taxes decrease; means-tested benefits increase; benefits for everyone decrease
  • Bindirect taxes decrease; means-tested benefits increase; benefits for everyone increase
  • Cindirect taxes increase; means-tested benefits decrease; benefits for everyone increase
  • Dindirect taxes increase; means-tested benefits decrease; benefits for everyone decrease

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