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A-LevelEconomicsGovernment microeconomic intervention9708/31 · Oct/Nov 2017 · Q151 Mark

In certain countries benefits are provided to individuals on low income. As their income rises the benefits are reduced and income tax has to be paid. What can result from this?

  1. A price stabilisation B poverty trap C replacement ratio D unemployment trap[1]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). 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, Oct/Nov 2017 Paper 3 Variant 1, question 15.

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