Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

Which pairing of fiscal policy measures would be most effective in lowering income inequality?

  • Atop rates of income tax: increase; indirect taxes: increase; value of state benefits: increase
  • Btop rates of income tax: increase; indirect taxes: reduce; value of state benefits: increase
  • Ctop rates of income tax: reduce; indirect taxes: increase; value of state benefits: reduce
  • Dtop rates of income tax: reduce; indirect taxes: reduce; value of state benefits: reduce

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