A-LevelEconomicsGovernment microeconomic intervention9708/32 · Oct/Nov 2019 · Q151 Mark
A country has a negative income tax regime. The curve NT in the diagram shows the country's initial tax schedule. [Figure 15.1] A change in the tax rate causes the schedule to shift to NT1. How will this affect work incentives and the after-tax distribution of income?
- (A)work incentives: strengthen, distribution of income: less equal
- (B)work incentives: strengthen, distribution of income: more equal
- (C)work incentives: weaken, distribution of income: less equal
- (D)work incentives: weaken, distribution of income: more equal
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.
- [1] A
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