Praxis 5511 Practice Question
Which policy improves income equality?
Correct Answer: A
Rationale: A progressive tax system effectively addresses income inequality by taxing higher incomes at increased rates, redistributing wealth to fund social programs that benefit lower-income individuals. This enhances overall equity by providing essential services and support.
In contrast, option B, less demand for unskilled labor, would likely exacerbate income inequality by reducing job opportunities and wages for low-skilled workers. Option C, a higher food sales tax, disproportionately affects lower-income individuals, worsening their financial burden. Lastly, option D, less housing subsidies, would further disadvantage low-income families by making housing less affordable, ultimately increasing inequality.
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