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O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2025 · Q251 Mark

In many high-income economies, increasing income inequality has led to greater levels of poverty. Which combination of policies would aim to reduce income inequality? [Table 25.1]

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Adecrease corporation tax, create more competition
Bincrease income tax, reduce the power of trade unions
Cincrease inheritance tax, increase the national minimum wage
Dincrease sales tax, privatise more public sector firms

✓ Correct answer

C: increase inheritance tax, increase the national minimum wage

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Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2025 Paper 1 Variant 2, question 25.

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