Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

Which alterations in direct and indirect tax are likely to widen inequality in the distribution of income in a developed economy?

  • Adirect taxes: fall; indirect taxes: fall
  • Bdirect taxes: fall; indirect taxes: rise
  • Cdirect taxes: rise; indirect taxes: fall
  • Ddirect taxes: rise; indirect taxes: remain constant

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