In 2016, the Indonesian government raised its spending on healthcare and education and was considering an increase in the school leaving age. It also intended to raise taxation. This policy could run against its aim of lowering unemployment at a time when several countries were at risk of moving into a recession.
(a)[2]
Identify two forms of tax.
(b)[4]
Explain two benefits to a government from a fall in unemployment.
(c)[6]
Analyse, using a production possibility curve (PPC) diagram, how high unemployment affects a country.
(d)[8]
Discuss whether a government ought to raise the school leaving age.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Direct tax, charged straight to the taxpayer” …