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Questions › JNU › JNU SSS 2019 › Q2
1 markPublic Economics › Taxation: incidence and efficiency › Optimal taxation and tax equityModerateabout 1 min

JNU SSS 2019 Question 2: Taxation: incidence and efficiency

With reference to negative income tax, consider the following statements:

I. Negative income tax is the money paid by government to citizens who earn below a certain prescribed limit.

II. It allows the claimants to receive income through simple filing of tax returns.

III. It may reduce the demand for welfare benefits.

Which of the statements given above is/are correct?

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Taxation: incidence and efficiency has come up 79 times in 7 exams since 2009.

What this question tests

This question is on Optimal taxation and tax equity, part of Taxation: incidence and efficiency in Public Economics.

Designing taxes to raise revenue efficiently and fairly.

TestStop has 5 past-paper questions on this subtopic.

Practise Taxation: incidence and efficiencyMore on Optimal taxation and tax equity

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Question from the JNU SSS 2019 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.