AP Microeconomics 6.5.2: Tax Policy

Classify tax systems and evaluate how tax structures affect incentives, equity, and income distribution.

[Maximum number: 1]

Which of the following is most likely to cause an increase in income inequality in a country?

A

Increasing access to financial markets for people in low-income groups

B

Providing subsidized job training to people in low-income groups

C

Providing free higher education to people in low-income groups

D

Implementing a progressive income tax structure

E

Implementing a regressive income tax structure

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POL-5.B—Explain sources of income and wealth inequality question 1