May/June 2026 Paper 32

2026 · 30 questions · 30 parts · 30 marks

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20Taxation Public ExpenditureMedium1 mark
The diagram shows the Laffer curve.
the Laffer curve, an inverted-U shaped curve rising from the origin to a single peak roughly in the middle of the graph and falling back to the horizontal axis, plotted against an unlabelled y-axis (vertical) and x-axis (horizontal)
Which combination correctly identifies the labels on the axes?
horizontal (x) axisvertical (y) axis
Acumulative percentage of incomecumulative percentage of tax revenue
Bincome inequalityper capita income
Ctax ratetax revenue
Dtax revenue as a percentage of GDPtax rate as a percentage of GDP