Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

Which combination of policies would lower income inequalities in a country?

  • Aimpose a fixed amount tax on all people and reduce unemployment benefits
  • Bincrease social welfare payments and impose a higher marginal income tax rate
  • Cincrease transfer payments and impose higher indirect taxation
  • Dreduce rates of tax on higher incomes and increase welfare payments

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