WJEC · Macroeconomics · Public finances and the role of the state
WJEC Economics past paper questions: Public finances and the role of the state
Every WJEC question on Public finances and the role of the state from 2019 to 2022: 2 data response questions. It covers Macroeconomic objectives and policy and Government intervention in markets. Each question links to its paper, mark scheme and examiner report.
SubtopicsMacroeconomic objectives and policy 2Government intervention in markets 1
Data response questions on public finances and the role of the state
Using a Laffer curve diagram, and with reference to the data, explain how decreasing the corporation tax rate could increase tax revenue for the UK Government.
Examiner insight
- What to cover
- This is explain, not discuss, so there are no evaluation marks. Explain the Laffer curve logic for corporation tax specifically: a lower rate raises post tax profit, encourages investment, retention of profits in the UK and less avoidance, so the tax base widens and revenue can rise. Quote the data.
- Watch out
- Do not write about income tax and incentives to work. The question is about corporation tax. Do not evaluate, there are no AO4 marks, and do not leave out the data.
With reference to the data, evaluate the likely relationship between a government's budget balance and its national debt.
Question text is quoted from the question papers, © WJEC CBAC Ltd, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.