Economics · May / June 2019 · Paper 11 · Question 16

A government increases the rate of income tax in order to pay for extra transfer payments, including cash benefits to the poor. What must occur as a result of this?

1. AIt changes the distribution of income.
2. BIt ensures the equality of incomes.
3. CIt leads to more people paying income taxes.
4. DIt reduces the level of unemployment.

As printed in the paper