Multiple choice

A redistribution of income in a country can be best brought about through

  1. Progressive taxation combined with progressive expenditure

  2. Progressive taxation combined with regressive expenditure

  3. Regressive taxation combined with regressive expenditure

  4. Regressive taxation combined with progressive expenditure
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Progressive taxation combined with progressive expenditure best redistributes income. Progressive taxation (higher rates on higher incomes) reduces inequality by collecting more from the wealthy. Progressive expenditure (spending more on welfare, education, healthcare for lower-income groups) further aids redistribution. Options B and D mix incompatible approaches. Option C (both regressive) would worsen inequality as it places disproportionate burden on the poor while benefiting the wealthy.

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