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Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 10

9708Equity and redistribution of income and wealth

Under which income tax and benefits system is a poverty trap unlikely to occur?

  1. Aprogressive income tax, means-tested benefits
  2. Bprogressive income tax, universal benefits
  3. Cproportional income tax, means-tested benefits
  4. Dproportional income tax, universal benefits

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Correct answer: D. proportional income tax, universal benefits

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