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Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 15

9708Addressing income and wealth inequality

Which government policy to counter the effects of income inequality is correctly matched with one of its advantages and one of its disadvantages?

  1. Afood subsidies for the poor | targets those in need | high administrative costs
  2. Bhigher national minimum wage | encourages skill training | higher budget deficit
  3. Cprovision of free child care | increases employability | disincentive to work
  4. Duniversal monetary benefits | saves on bureaucracy | reduced labour mobility

As printed in the paper

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Correct answer: A. food subsidies for the poor | targets those in need | high administrative costs

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