Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

(a)[2]

Distinguish clearly between income and wealth.

(b)[6]

Explain the difference between equity and equality and consider whether the report’s three recommendations are based on equity or equality.

(c)[6]

Use the evidence in the article to consider the effect on business activity of using tax havens.

(d)[6]

Discuss the economic consequences for governments whose citizens and businesses avoid paying tax on a high proportion of their incomes or profits.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Income is money that comes in at regular intervals.

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