Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

Which government policy for reducing the effects of income inequality is matched correctly with one advantage and one disadvantage?

  • Afood subsidies for the poor: targets those in need; high administrative costs
  • Bhigher national minimum wage: encourages skill training; higher budget deficit
  • Cprovision of free child care: increases employability; disincentive to work
  • Duniversal monetary benefits: saves on bureaucracy; reduced labour mobility

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI