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1 The diagram shows the supply and demand curves for a good. The curve labelled MSC shows the marginal social cost of producing the good.
(02-11)
Which area measures the net welfare gain to society from reducing output from OQ1 to OQ2?
2。Which of the following elements of a tax and benefits system is regressive? (02-6)
A the taxation of capital gains
B the payment of child benefits to families
C specific taxes on beer and tobacco
D rent subsidies to tenants of publicly owned housing
3。 The value of government benefits that households are able to claim currently depends on their level of income. What would reduce the extent of the resulting poverty trap?
（05-11）
A a campaign to encourage more households to apply for the benefits to which they are entitled
B an increase in the level of government benefits
C a reduction in the rate at which benefits are withdrawn as a household’s income increases
D the targeting of benefits on those in greatest need
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