Economics 2281 · O Level · Poverty

Poverty — practice question

In a number of high-income economies, rising income inequality has resulted in higher poverty levels. Which mix of policies would be intended to lessen income inequality?

  • Afiscal policy: decrease corporation tax; supply-side policy: create more competition
  • Bfiscal policy: increase income tax; supply-side policy: reduce the power of trade unions
  • Cfiscal policy: increase inheritance tax; supply-side policy: increase the national minimum wage
  • Dfiscal policy: increase sales tax; supply-side policy: privatise more public sector firms

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