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Economics · May / June 2020 · Paper 11 · Question 25

2281Poverty

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

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

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

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