Each question is introduced by stimulus material. In your answer you may refer to this material and/or to other examples that you have studied. In 2019, the government of France proposed a 3% tax on the revenue of large firms that advertise and sell products online. This tax may lead to a redistribution of income. There are concerns that this tax may also lead to a reduction in France's export of services as firms affected may leave France. However, the government hopes that supply-side policy measures will encourage such firms to stay in France. Define redistribution of income.
Exam No:0455_w21_qp_21 Year:2021 Question No:2(a)
Answer:
Transfer of income from some individuals (1) to others (1).
Tax taken from the rich (1) is spent on the poor (1).
Progressive / regressive taxation (1)
Tax taken from the rich (1) is spent on the poor (1).
Progressive / regressive taxation (1)
Knowledge points:
4.2.1 the macroeconomic aims of government
Solution:
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