Economics- Policies for income and wealth

Question 1

Progresive taxation

Answer 1

This is a tax system in which people with higher income pay a higher percentage of their income in taxes than those with a lower income. this can help to redistribute wealth from the rich to the poor.

Question 2

Minimum wage laws

Answer 2

The government can set a minimum wage that employers must pay to their workers. This can help to ensure that low wage workers receive a fair wage and reduce income inequality.

Question 3

Education and training

Answer 3

Government can invest in education and training programmes to provide individuals with the skills they need to earn higher income This is can help to increase social mobility and reduce income inequality.

Question 4

Inheritance tax

Answer 4

Inheritance taxes are taxes paid on the value of an estate after someone dies. These taxes can help to reduce the concentration of wealth among a small number of families over time.