Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

What economic effect does a universal basic income (UBI) have? (table: lowers the incentive to work / increases equality)

  • Areduces the incentive to work: no; improves equality: no
  • Breduces the incentive to work: no; improves equality: yes
  • Creduces the incentive to work: yes; improves equality: no
  • Dreduces the incentive to work: yes; improves equality: yes

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