DP Economics
Question 18N.3.HL.TZ0.3l
| Date | November 2018 | Marks available | [Maximum mark: 4] | Reference code | 18N.3.HL.TZ0.3l |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Explain | Question number | l | Adapted from | N/A |
l.
[Maximum mark: 4]
18N.3.HL.TZ0.3l
Figure 4 represents the circular flow of income in Country A, with values in billions of dollars ($).
Figure 4
The government of Country A decides to increase the level of taxation to $34 billion.
Table 3 provides information on the rates of direct tax in Country A.
Table 3
Table 4 provides information on the household distribution of income in Country A.
Table 4
(l)
Explain how an increase in the top rate of direct tax from 32 % to 36 % might affect equity and efficiency in Country A.
[4]
Markscheme
NB A response which explains that inequality will be reduced, without explicitly using the term equality/inequality, should be rewarded.
