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Economics (AS & A Level) · Oct / Nov 2021 · Paper 31 · Question 13

9708Addressing income and wealth inequality

Which combination of policies is most likely to reduce the inequality of the income distribution?

  1. Adecrease direct tax, decrease indirect tax, decrease availability of benefit
  2. Bdecrease direct tax, increase indirect tax, increase availability of benefit
  3. Cincrease direct tax, decrease indirect tax, increase availability of benefit
  4. Dincrease direct tax, increase indirect tax, decrease availability of benefit

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Correct answer: C. increase direct tax, decrease indirect tax, increase availability of benefit

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