Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

Which combination of policies is most likely to increase the number of low-paid workers who are trapped in the poverty trap?

  • Aindividual’s tax-free allowance for income tax: decrease; proportion of all benefits that are means-tested: increase
  • Bindividual’s tax-free allowance for income tax: decrease; proportion of all benefits that are means-tested: decrease
  • Cindividual’s tax-free allowance for income tax: increase; proportion of all benefits that are means-tested: increase
  • Dindividual’s tax-free allowance for income tax: increase; proportion of all benefits that are means-tested: unchanged

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