A-LevelEconomicsGovernment microeconomic intervention9708/32 · Feb/Mar 2019 · Q131 Mark
A country has a negative income tax. The curve NT in the diagram shows the country's initial tax schedule. [Diagram showing tax and income axes; lines NT and NT₁ with intersection point O and labels + and - on the tax axis]
- 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? work incentives distribution of income A strengthen more equal B strengthen less equal C weaken less equal D weaken more equal[1]
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 (Feb/Mar 2019). The mark or mark type is shown in brackets.
- [1] D
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