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Economics · May / June 2026 · Paper 11 · Question 19

2281Fiscal policy

The table shows government receipts from taxation in year 1 and year 2. What can be concluded from the table?

  1. ADirect tax revenue increases from year 1 to year 2.
  2. BIndirect tax revenue decreases from year 1 to year 2.
  3. CInheritance tax becomes more regressive from year 1 to year 2.
  4. DTotal tax revenue stays the same from year 1 to year 2.

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Correct answer: A. Direct tax revenue increases from year 1 to year 2.

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