In recent years, prices in Mexico have risen. Indirect taxes have also been raised. Bus fares and food have become dearer. In 2015, the Mexican Government planned to reduce its spending by US$8.3 billion.
(a)[2]
Define ‘indirect taxes’ and state one example.
(b)[4]
Explain two reasons for a rise in demand for bus transport.
(c)[6]
Analyse how a cut in government spending on education could result in unemployment.
(d)[8]
Discuss whether a government should raise taxes on food.
Worked solution & mark scheme
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