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Economics · Oct / Nov 2020 · Paper 12 · Question 19

2281Mixed economic system

The government wants to reduce the consumption of cigarettes. Which policy would be most likely to do this?

  1. Aincreasing a subsidy on cigarettes
  2. Bincreasing income tax
  3. Cincreasing interest rates
  4. Dincreasing the indirect tax on cigarettes

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Correct answer: D. increasing the indirect tax on cigarettes

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