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Economics · May / June 2026 · Paper 21 · Question 3

2281

As printed in the paper

The question as text

Many governments tax petrol. As drivers switch to electric vehicles, this revenue will be lost. However, tax revenue may come from other sources if a country’s production possibility curve (PPC) shifts to the right. Tax revenue may be used for a variety of purposes including subsidising public transport, for example bus transport.

Read automatically from the paper; the printed page above is exact.

Show the answer and mark scheme
  • 3(a)[2]

  • 3(b)[4]

  • 3(c)[6]

  • 3(d)[8]

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