O-LevelEconomicsGovernment and the macroeconomy2281/13 · Oct/Nov 2023 · Q171 Mark
A government increases its revenue by higher direct taxation of both personal incomes and company profits. What is most likely to be the reason for this increase?
Ato control spending on specific consumer goods
Bto encourage business investment
Cto provide public and merit goods
Dto reduce pollution from industrial production
✓ Correct answer
C: to provide public and merit goods
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