📚 Learning Guide
Income Disparities in Nations
easy

What is one common way that governments intervene to address income disparities within a nation?

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Learning Path
Learning Path

Question & Answer
1
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2
Review Options
3
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4
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Choose 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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