4.1.7.3 Income and Wealth Policies

What is the primary purpose of benefits as a government policy?

• To redistribute income

• To enhance private sector profits

• To increase tax revenue

• To reduce government spending

What is a potential negative effect of removing means-tested benefits?

• Improves income equality

• Reduces government expenditure

• Increases short-term poverty

• Decreases the incentive to work

How does state provision of services like healthcare and education help alleviate poverty?

• By privatizing essential services

• By equalizing access to essential services

• By increasing taxes on all income groups

• By reducing personal responsibility

What is a consequence of progressive taxation?

• It increases the poverty trap significantly

• It may drive high earners to lower-tax regions

• It encourages economic growth

• It reduces the quality of public services

What is a direct benefit of economic growth in terms of poverty alleviation?

• It reduces the availability of jobs

• It creates jobs and reduces unemployment

• It leads to a decrease in public spending

• It increases the cost of living

What is a potential downside of setting a national minimum wage?

• It may lead to reduced workforce by employers

• It guarantees economic growth

• It increases the number of high-paying jobs

• It decreases the cost of living

How might universal benefits impact government finances?

• Decrease overall government expenditure

• Increase the need for higher taxes

• Reduce the national debt

• Stimulate private investments

What is a negative effect of free state-provided services?

• They ensure private sector growth

• They lead to lower taxes

• They increase personal earnings

• They diminish incentives to earn more

Why might economic growth not always reduce poverty effectively?

• It increases educational opportunities

• It decreases government revenue

• It reduces public service quality

• It only benefits the rich

What does a national minimum wage fail to take into account?

• The number of available jobs

• The varying cost of living in different areas

• The level of education required for employment

• The age of the workers