Economics (AS & A Level) · Oct / Nov 2025 · Paper 34 · Question 13
9708Equity and redistribution of income and wealth
Which combination of policies is most likely to reduce the number of low-paid workers caught in the poverty trap?
- Aindividual's tax-free allowance for income tax decrease; national minimum wage in real terms increase
- Bindividual's tax-free allowance for income tax decrease; national minimum wage in real terms unchanged
- Cindividual's tax-free allowance for income tax increase; national minimum wage in real terms increase
- Dindividual's tax-free allowance for income tax increase; national minimum wage in real terms unchanged
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Correct answer: C. individual's tax-free allowance for income tax increase; national minimum wage in real terms increase
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