Question : Redistribution of income in a country can be brought about through
Option 1: progressive taxation combined with progressive expenditure
Option 2: progressive taxation combined with regressive expenditure
Option 3: regressive taxation combined with regressive expenditure
Option 4: regressive taxation combined with progressive expenditure
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Correct Answer: progressive taxation combined with progressive expenditure
Solution : The correct answer is progressive taxation combined with progressive expenditure.
Redistribution of income and redistribution of wealth, respectively, are the transfers of income and wealth (including real estate) from some people to others through taxation, monetary policies, etc. Combining progressive taxation and progressive spending can accomplish this. Public funding for programs that benefit the poor and economic regulation are methods used to implement redistributive policies.
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Question : The income of A is $\frac{2}{3}$ of B's income and the expenditure of A is $\frac{3}{4}$ of B's expenditure. If $\frac{1}{3}$ of the income of B is equal to the expenditure of A, then the ratio of the savings of A to those of B is:
Option 1: 5 : 3
Option 2: 3 : 5
Option 3: 4 : 3
Option 4: 3 : 4
Question : The rate of tax increase as the amount of the tax base increases is called
Option 1: proportional tax
Option 2: progressive tax
Option 3: regressive tax
Option 4: degressive tax
Question : Which of the following is not included in domestic income?
Option 1: Income earned by the residents of the country
Option 2: Income earned by non-residents outside the country
Option 3: Income earned by all the employees of the country
Option 4: Profit of all the industries of the country
Question : Which of the following is not a method of measuring national income?
Option 1: Intermediate goods method
Option 2: Expenditure method
Option 3: Income method
Option 4: Product method
Question : The income of A is 80% of B's income and the expenditure of A is 60% of B's expenditure. If the income of A is equal to 90% of B's expenditure, then by what percentage are the savings of A more than B's savings?
Option 1: 125%
Option 2: 140%
Option 3: 100%
Option 4: 150%
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