Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

Which set of fiscal policy measures would be most effective in lowering income inequality? (table: top rates of income tax / indirect taxes / value of state benefits)

  • Aincrease top rates of income tax; increase indirect taxes; increase value of state benefits
  • Bincrease top rates of income tax; reduce indirect taxes; increase value of state benefits
  • Creduce top rates of income tax; increase indirect taxes; reduce value of state benefits
  • Dreduce top rates of income tax; reduce indirect taxes; reduce value of state benefits

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