Edexcel A Level Economics A
Edexcel A Level Economics A 4.2 Poverty and Inequality Exam Questions
Free Edexcel A Level Economics A exam questions on 4.2 Poverty and Inequality, with mark schemes. Covers absolute and relative poverty, measuring inequality and their causes.
4.2 Poverty and Inequality exam questions
1 question pack of real past exam questions with its mark scheme. Answer every question without notes, then mark your answers line by line against the mark scheme.
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Edexcel A Level Economics A 9EC0 Flashcards (Anki & Quizlet)
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Use them on Anki or Quizlet, then test yourself with the questions on this page.
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About Edexcel A Level Economics A 4.2 Poverty and Inequality
4.2 deals with who gains and loses in an economy. Data questions often show a Lorenz curve or Gini coefficient for you to interpret.
What you need to know
- Absolute and relative poverty Absolute poverty is lacking the income for basic needs. Relative poverty is income below a proportion of the median, usually 60 percent in the UK.
- Causes of poverty Unemployment, low wages, ill health, discrimination, regional differences and family circumstances.
- Inequality Distinction between wealth and income inequality, measured by the Lorenz curve and Gini coefficient. Causes include education, skills, tax and benefits, and globalisation.
- Inequality and growth The significance of capitalism for inequality and the Kuznets curve.
Common mistakes in 4.2 Poverty and Inequality
- Confusing absolute poverty with relative poverty.
- Reading a higher Gini coefficient as more equal; a higher value means more unequal.
- Using income and wealth as if they are the same.
- Assuming growth always reduces inequality.
Try three 4.2 Poverty and Inequality exam-style questions
1. Define relative poverty. (2 marks)
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When household income is below a set proportion of average income (1), usually 60 percent of median income in the UK (1).
2. Explain what a Gini coefficient of 0.35 shows compared with one of 0.25. (2 marks)
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The Gini coefficient measures income inequality from 0 (perfect equality) to 1 (perfect inequality) (1), so 0.35 shows greater inequality than 0.25 (1).
3. Explain one cause of rising income inequality in developed countries. (3 marks)
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Globalisation and technology raise demand for highly skilled workers (1) while low skilled jobs are automated or move abroad (1), so the wage gap between skilled and unskilled workers widens (1).
4.2 Poverty and Inequality FAQs
What does Edexcel A Level Economics 4.2 cover?
Absolute and relative poverty, their causes, the measurement of inequality and its causes, and the link between inequality and growth.
How do I read a Lorenz curve?
The further the Lorenz curve bows away from the line of perfect equality, the greater the inequality. The Gini coefficient is the area between the two divided by the total area under the line of equality.
What is the Kuznets curve?
The idea that inequality first rises and then falls as an economy develops.
Revise this topic with flashcards: Edexcel A Level Economics A 9EC0 Flashcards, with mark scheme answers for Anki and Quizlet.
