Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

Which combination of policy changes is most likely to shift income from the richest households to the poorest households in an economy? (policies: excise duties; means-tested benefits; universal benefits)

  • Adecrease excise duties; increase means-tested benefits; decrease universal benefits
  • Bdecrease excise duties; increase means-tested benefits; increase universal benefits
  • Cincrease excise duties; decrease means-tested benefits; increase universal benefits
  • Dincrease excise duties; decrease means-tested benefits; decrease universal benefits

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