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2.1 Introduction to the national economy

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Question 34

The government is considering two possible income tax systems, P and Q. Table 1 shows how much of a self-employed bicycle repairer's annual income would remain after tax under each system.

Annual incomeIncome remaining after tax under System PIncome remaining after tax under System Q
£30,000£27,000£27,000
£60,000£51,000£54,000

Using Table 1, explain which system would be a progressive tax.

[2]
Markscheme

2.1 Introduction to the national economy Questions

  1. GCSE
  2. /Economics
  3. /2.1 Introduction to the national economy

75 exam-style questions on AQA GCSE Economics 2.1 Introduction to the national economy, covering 2.1.1a What an interest rate is, 2.1.1b Interest rates and consumer decisions, 2.1.1c Interest rates, producer decisions and calculations, 2.1.2a UK government revenue and spending, and 2.1.2b Direct, indirect and progressive taxation. Each one has a worked solution and a mark scheme showing where the marks go.

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