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1.7 The distribution of income and wealth: poverty and inequality (A-level only)

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Question 13

The table below shows income and expenditure on goods and services for four individuals for the tax year ending April 2023.

IndividualIncome (£)Expenditure (£)
Beatrice60,00030,000
Carlos18,00015,000
Deena40,00032,000
Elijah120,00024,000

The government has set a proportional income tax rate of 20% and a tax on all expenditure of 10%. Which one of the following statements is true?

During the tax year ending April 2023, the:

A

burden of total tax, measured as a percentage of income, was highest for Carlos.

B

gap in income between Deena and Elijah remained the same before and after paying income tax.

C

tax on expenditure was not regressive as all four individuals faced the same rate of tax on their spending.

D

individual who made the greatest contribution to government tax revenue was Beatrice.

Markscheme

1.7 The distribution of income and wealth: poverty and inequality (A-level only) Questions

  1. A Level
  2. /Economics
  3. /1.7 The distribution of income and wealth: poverty and inequality (A-level only)

76 exam-style questions on AQA A Level Economics 1.7 The distribution of income and wealth: poverty and inequality (A-level only), covering 1.7.1 The distribution of income and wealth, 1.7.2 The problem of poverty, and 1.7.3 Government policies to alleviate poverty and to influence the distribution of income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.

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