WAEC 2018 Economics · Question 37
income is redistributed when the rich are progressively taxed and?
Options
- A.more private schools are established
- B.subsidy is provided on petroleum products
- C.more public goods are provided
- D.farmers are given guaranteed prices
Answer: C. more public goods are provided
Explanation written with AI and checked against the answer key
Analyze the question: It asks how income gets redistributed when the rich are taxed progressively. Progressive taxation takes a larger share of income from high earners. For this to count as redistribution, the money collected must be used in a way that benefits the wider population, especially the poor.
Concept: Income redistribution means transferring income or its benefits from the rich to the poor. It is done in two steps:
- Collect more tax from the rich through progressive taxes.
- Spend the revenue on things that benefit everyone, especially low-income earners. These include public goods and services such as roads, public schools, hospitals, water and security.
Evaluate the options:
- A. More private schools are established. Private schools charge fees, so they mostly serve those who can afford them. They are not funded by the tax revenue and do not redistribute income.
- B. Subsidy on petroleum products. This is a subsidy on a particular product. The rich often consume more fuel and so benefit more. It is not a targeted way of redistributing income from the rich.
- C. More public goods are provided. Tax revenue from the rich is used to provide goods that everyone can use, including the poor, who could not afford them privately. This is a true redistribution of benefits.
- D. Farmers given guaranteed prices. This is an agricultural price-support policy. It helps farmers as a group, but it is not tied to taxing the rich, so it is not the best answer.
Answer: Option C fits the logic of redistribution best.
Exam tip: In redistribution questions, remember "tax the rich, spend on the masses". Look for the option that shows tax money being spent on broad public benefits such as public goods, free education or health care, not on private services.
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