Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

A country's government aims to create a more even distribution of income. Which mix of measures is most likely to be effective in achieving this objective?

  • Atax-free income allowance decrease; welfare benefits reduce means-tested benefits
  • Btax-free income allowance decrease; welfare benefits reduce universal benefits
  • Ctax-free income allowance increase; welfare benefits increase means-tested benefits
  • Dtax-free income allowance increase; welfare benefits increase universal benefits

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