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2.1 Introduction to the national economy

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Question 13

The government reduces progressive income tax rates and replaces the lost revenue by increasing taxes on everyday purchases. Which outcome is most likely?

[1]
A

Lower-income households pay a larger share of income in tax and the overall system becomes less progressive

B

Lower-income households pay a smaller share of income in tax and the overall system becomes less progressive

C

Lower-income households pay a smaller share of income in tax and the overall system becomes more progressive

D

The share of income paid in tax is unchanged for every household

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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