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Economics (AS & A Level) · Oct / Nov 2021 · Paper 32 · Question 14

9708Equity and redistribution of income and wealth

In certain countries benefits are provided to individuals on low income. As their income rises the benefits are reduced and income tax has to be paid. What can result from this?

  1. Aprice stabilisation
  2. Bpoverty trap
  3. Creplacement ratio
  4. Dunemployment trap

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Correct answer: B. poverty trap

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