Question

Progressive taxation in fiscal policy supports resource mobilisation by:

• A. Promoting income inequalities
• B. Equitably distributing resources across society
• C. Discouraging savings and investments
• D. Reducing public trust

Answer 1

Answer:

B. Equitably distributing resources across society

• Progressive taxation ensures that wealthier groups contribute more, helping to reduce income disparities and channeling resources to sectors needing development