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?
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. This question tests the candidate's understanding of government intervention in markets within the Economicssyllabus. The examiner's mark scheme requires...
📋 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...
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