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O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2015 · Q181 Mark

A government wishes to close the gap between the earnings of the rich and the poor. What should it do to achieve this aim?

Aincrease progressive taxation
Bincrease the rate of interest
Cincrease the rate of sales tax
Dincrease the supply of money

✓ Correct answer

A: increase progressive taxation

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2015 Paper 1 Variant 2, question 18.

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