State two measures taken by the Government to reduce income inequality

1.	State two measures taken by the Government to reduce income inequality in an economy.
Answer» The two measures taken by the government to reduce the income inequality in the economy are: 1. Progressive taxation reduces absolute income inequality when the higher rates on higher-income individuals are imposed. 2. Luxuries items or those items which are consumed by the rich section of the society are heavily taxed in comparison to necessity items.

State two measures taken by the Government to reduce income inequality in an economy.

Answer»

The two measures taken by the government to reduce the income inequality in the economy are:

1. Progressive taxation reduces absolute income inequality when the higher rates on higher-income individuals are imposed.

2. Luxuries items or those items which are consumed by the rich section of the society are heavily taxed in comparison to necessity items.