Poverty & Inequality (Edexcel A Level Economics A)

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 one likely reason why global wealth inequality has increased.

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)

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

An increase in:

The chart below shows the UK Gini coefficient of incomes, 2007 to 2013.

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

Which of the following best describes absolute poverty?

What is the key difference between absolute poverty and relative poverty?

What is a potential consequence of income and wealth inequality in a society?