Economics 9708 · AS & A Level · Unemployment

Unemployment — practice question

(a)[4]

Briefly explain how, according to the article, a rise in economic growth increases happiness.

(b)[4]

With the help of a diagram, explain how higher indirect tax rates may affect a consumers total utility.

(c)[4]

Consider whether you agree with the view in the article that increasing taxes on the rich is a good idea.

(d)[8]

Discuss whether consumer welfare always rises when economic growth rises.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Growth brings about higher incomes

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