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
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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