Economics · Oct / Nov 2016 · Paper 12 · Question 25
2281Poverty
A government introduces state benefits for the unemployed and increases the top rate of income tax to pay for the benefits. What effect will these changes have on poverty and the tax system?
- Aincrease; make it more progressive
- Bincrease; make it more regressive
- Creduce; make it more progressive
- Dreduce; make it more regressive
As printed in the paper
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Correct answer: C. reduce; make it more progressive
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