(a)[8]
Explain the likely economic causes of income inequality and assess whether inequality of income can benefit an economy.
(b)[12]
Using a diagram, assess whether introducing a minimum price in a market can be justified.
Economics 9708 · AS & A Level · Taxes and subsidies
Taxes and subsidies — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “AO1 Knowledge and understanding (max 3): Clear knowledge and understanding of at least two likely economic causes of income inequality, including employment/unemployment, skills/qualifications/experience, public vs private sector employment, full-time vs part-time, provision of transfer payments, and the level and type of taxation. Two reasons explained well can earn up to 3 marks; explaining 1 reason can obtain at most 1 mark.” …
- Full mark scheme, point by point
- Step-by-step worked solution
- Write your answer & get it marked instantly by AI