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Economics (AS & A Level) · Oct / Nov 2024 · Paper 33 · Question 15

9708Equity and redistribution of income and wealth

Which combination of policies is most likely to increase the number of low-paid workers caught in the poverty trap?

  1. Aindividual's tax-free allowance for income tax: decrease; proportion of all benefits that are means-tested: increase
  2. Bindividual's tax-free allowance for income tax: decrease; proportion of all benefits that are means-tested: decrease
  3. Cindividual's tax-free allowance for income tax: increase; proportion of all benefits that are means-tested: increase
  4. Dindividual's tax-free allowance for income tax: increase; proportion of all benefits that are means-tested: unchanged

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Correct answer: A. individual's tax-free allowance for income tax: decrease; proportion of all benefits that are means-tested: increase

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