In 2016, the Indonesian government stepped up spending on healthcare and education and also looked at increasing the school leaving age. It likewise intended to raise taxation. That decision could clash with its objective of cutting unemployment, at a moment when several countries were in danger of sliding into recession.
(a)[2]
Identify any two tax categories.
(b)[4]
Explain two advantages to a government when unemployment falls.
(c)[6]
Analyse, using a production possibility curve (PPC) diagram, the consequences of high unemployment in a country.
(d)[8]
Discuss whether a government should increase 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” …