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Economics · Oct / Nov 2025 · Paper 12 · Question 25

2281Poverty

In many high-income economies, increasing income inequality has led to greater levels of poverty. Which combination of policies would aim to reduce income inequality?

  1. Adecrease corporation tax; create more competition
  2. Bincrease income tax; reduce the power of trade unions
  3. Cincrease inheritance tax; increase the national minimum wage
  4. Dincrease sales tax; privatise more public sector firms

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Correct answer: C. increase inheritance tax; increase the national minimum wage

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