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Economics (AS & A Level) · May / June 2025 · Paper 33 · 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?

  1. Anational minimum wage is changed
  2. Bbenefits payments are means-tested
  3. Csubsidised housing payments for low-income earners are increased
  4. 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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