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A-LevelEconomicsGovernment microeconomic intervention9708/31 · May/June 2020 · Q161 Mark

The diagram shows two Lorenz curves.

  1. (a)If the Lorenz curve shifts from L₁ to L2, what is least likely to have caused this? A Capital gains tax has been reduced. B Income tax has been made more progressive. C Inheritance tax has been reduced. D The tax-free allowance has been decreased for everyone.[1]

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Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

  1. [1] B

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About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, May/June 2020 Paper 3 Variant 1, question 16.

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