Income and wealth inequality

Using a Lorenz curve diagram, explain how income inequality is measured using the Gini coefficient. Refer to Extract A in your answer.

With reference to Figure 1 and Extract A, examine two likely causes of income inequality within the UK.

With reference to Figure 2, assess whether an increase in real income improves subjective happiness within the UK.

With reference to Extract C and your own knowledge, discuss methods the UK government could use to increase tax revenue.

With reference to Extract B, discuss the benefits of an increase in infrastructure spending on the UK economy. Use an aggregate demand and aggregate supply diagram to support your answer.

In terms of income distribution and wealth distribution Brazil is one of the most unequal countries in the world. Its income Gini coefficient is 0.449 and it is ranked number 2 in the world for its wealth inequality.

Evaluate possible economic causes of income and wealth inequalities within a country such as Brazil.

(Source: https://www.gfmag.com/)

In terms of income distribution and wealth distribution Brazil is one of the most unequal countries in the world. Its income Gini coefficient is 0.449 and it is ranked number 2 in the world for its wealth inequality.

Evaluate possible economic causes of income and wealth inequalities within a country such as Brazil.

(Source: https://www.gfmag.com/)

According to the charity Oxfam, the combined wealth of the 62 richest people in the world is the same as the wealth of the poorest half of the world’s population. The value of the combined wealth of the poorest half of the world’s population has fallen by 38% between 2010 and 2016.

(Source: adapted from https://www.oxfam.org/en/pressroom/pressreleases /2016-01-18/62-people-own-same-half-world-reveals-oxfam-davos-report)

Explain the distinction between income and wealth.

Explain one likely reason why global wealth inequality has increased.

Which one of the following would be most likely to reduce a country’s Gini coefficient?

An increase in:

With reference to Figure 1 and Extract A, explain what is meant by a ‘highly concentrated’ market for potato crisps (Extract A, lines 2–3).

Apart from changes in indirect taxes and subsidies, examine two causes of income inequality within a developed economy such as the UK.

In Extract A, lines 15–16, it was suggested that some firms may respond to the advertising ban by cutting the prices of their products.

Using game theory and the information provided in Figure 1 and Extract A, discuss the effects on firms of cutting prices in an oligopolistic market.

EITHER

Evaluate the microeconomic and macroeconomic effects of increased government spending on education to promote healthy eating in the UK.

Evaluate the likely microeconomic and macroeconomic effects of imposing a tax on HFSS foods .

Write your answer here:

With reference to the information provided, explain the distinction between absolute poverty and relative poverty.

With reference to the information provided and your own knowledge, examine two factors that might explain the differing rates of decline in absolute poverty in East Asia and Sub-Saharan Africa.

With reference to Extract A, discuss two macroeconomic policies, apart from protectionism, that a government could use to reduce the negative effects of globalisation.

Assess the view that ‘some level of inequality is desirable to maintain an appropriate incentive structure in the economy’ (Extract B, lines 19 and 20).

Discuss the role of the financial sector in the growth and development of developing countries.

Explain one likely reason for the change in UK income inequality since 2007.

Which one of the following values for the Gini coefficient is correct if there is perfect income equality?

B 0.5