Edexcel A Level Economics B
Edexcel A Level Economics B 3.6 Inequality and Redistribution Exam Questions
Free Edexcel A Level Economics B exam questions on 3.6 Inequality and Redistribution, with mark schemes. Covers poverty, measures of inequality and policies to redistribute income.
3.6 Inequality and Redistribution 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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A Level Economics Flashcards
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Pick your exam board, then test yourself with the questions on this page.
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About Edexcel A Level Economics B 3.6 Inequality and Redistribution
3.6 covers how inequality is measured and what governments do about it. Data questions often use a Lorenz curve or Gini coefficient.
What you need to know
- Poverty Absolute poverty is lacking basic needs; relative poverty is income below 60 percent of the median.
- Measuring inequality The Lorenz curve and Gini coefficient, and the difference between income and wealth inequality.
- Causes of inequality Differences in education and skills, wealth, discrimination, technology and globalisation.
- Redistribution Progressive taxes, benefits, the minimum wage and spending on education, and their trade-offs with incentives.
Common mistakes in 3.6 Inequality and Redistribution
- Reading a higher Gini coefficient as more equal.
- Confusing income with wealth.
- Ignoring disincentive effects of high taxes and benefits.
Try three 3.6 Inequality and Redistribution exam-style questions
1. Define absolute poverty. (2 marks)
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When a person lacks the income needed (1) to meet basic needs such as food, shelter and clothing (1).
2. Explain one way a progressive tax system reduces inequality. (2 marks)
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Higher earners pay a larger proportion of their income in tax (1), narrowing the gap in disposable incomes (1).
3. Explain one disadvantage of raising the national minimum wage. (2 marks)
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It raises labour costs (1), so some firms may cut jobs or hours, especially for low skilled workers (1).
3.6 Inequality and Redistribution FAQs
What does Edexcel A Level Economics B 3.6 cover?
Poverty, measures and causes of inequality, and policies to redistribute income and wealth.
How is the Gini coefficient read?
0 is perfect equality and 1 is perfect inequality, so a higher value means more inequality.
Is inequality always bad?
Some inequality creates incentives, but high inequality can reduce growth, social mobility and cohesion.
Revise this topic with flashcards: A Level Economics Flashcards, with mark scheme answers for Anki and Quizlet.
