A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2024 · Q121 Mark
A policy that aims to reduce the degree of inequality of income will also reduce the level of employment in a country. What is most likely to be such a policy?
AThe effective minimum wage is increased by 25%.
BThe rate of income tax paid by the lowest band of earners is reduced.
CThe government increases the level of subsidies given to producers of some merit goods.
DThe government provides more goods that are regarded as essential.
✓ Correct answer
A: The effective minimum wage is increased by 25%.
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