Economics (AS & A Level) · Oct / Nov 2024 · Paper 32 · Question 29
9708Addressing income and wealth inequality
The diagram shows two Lorenz curves. If the Lorenz curve shifts from L1 to L2, what is least likely to have caused this?
- ACapital gains tax has been reduced.
- BIncome tax has been made more progressive.
- CInheritance tax has been reduced.
- DThe tax-free allowance has been decreased for everyone.
As printed in the paper
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Correct answer: B. Income tax has been made more progressive.
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