A-LevelEconomicsGovernment Intervention in MarketsMay/June 2022Paper 1 Q141 Mark

Which combination of tax changes is most likely to be regressive in a developed economy?

Q: What topic does this question test?

This question tests Government Intervention in Markets in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Aincreasing the rate of wealth tax and raising the rate of sales tax (VAT) on luxury products

Bintroducing a tax on owning property based on its sales value and increasing the rate of income tax

Creducing the basic rate of income tax and increasing the duty on fuel

Dremoving the tax-free allowance for income tax and extending sales tax (VAT) to include all food

✓ Correct Answer

The correct answer is D: removing the tax-free allowance for income tax and extending sales tax (VAT) to include all food

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Government Intervention in Markets in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2022 examination, Paper 1 Variant 2.

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