Economics (AS & A Level) · May / June 2025 · Paper 31 · Question 11
9708Equity and redistribution of income and wealth
What could result in an individual being caught in the poverty trap if their income increases?
- Anational minimum wage is changed
- Bbenefits payments are means-tested
- Csubsidised housing payments for low-income earners are increased
- Dthe income level at which income tax is first paid is increased
As printed in the paper
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Correct answer: B. benefits payments are means-tested
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