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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2020 · Q251 Mark

An additional 700 000 UK children and pensioners fell into relative poverty between 2013 and 2017. What might be the reason for this?

ADirect taxes had increased, and indirect taxes had fallen.
BReal gross domestic product was rising faster than the population.
CThe death rate was exceeding the birth rate.
DThe real value of government welfare benefits had fallen.

✓ Correct answer

D: The real value of government welfare benefits had fallen.

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2020 Paper 1 Variant 1, question 25.

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