Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Implementing progressive taxation systems
B
Reducing the minimum wage
C
Encouraging offshoring of jobs
D
Increasing tariffs on imports
Understanding the Answer
Let's break down why this is correct
Answer
One common way that governments intervene to address income disparities is through progressive taxation. This means that people who earn more money pay a higher percentage of their income in taxes compared to those who earn less. The government then uses the money collected from these taxes to fund programs that help lower-income individuals, such as education, healthcare, and social services. For example, if a wealthy person pays 30% of their income in taxes while someone with a lower income pays only 10%, the government can use that extra money to provide scholarships for students from poorer families. This approach helps to reduce the gap between rich and poor by giving everyone a better chance to succeed.
Detailed Explanation
Progressive taxation means that people who earn more money pay a higher percentage in taxes. Other options are incorrect because Some might think lowering the minimum wage helps businesses; Encouraging offshoring means moving jobs to other countries for cheaper labor.
Key Concepts
government intervention
Topic
Income Disparities in Nations
Difficulty
easy level question
Cognitive Level
understand
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