Poverty & Inequality (Edexcel A Level Economics A)

Exam Questions

1 hour13 questions
1
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2 marks

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.

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2
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2 marks

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.

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3
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1 mark

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:

  • import tariffs

  • progressive taxes

  • regressive taxes

  • value added tax

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4
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1 mark

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

9ec0-02-june-2017-q4

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

  • 0

  • 0.5

  • 1

  • 50:50

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5
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1 mark

Which of the following best describes absolute poverty?

  • A condition where people have significantly lower incomes than others in their society

  • The inability to afford basic necessities required to live

  • Poverty that varies based on one's geographical location

  • The lack of access to education

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6
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1 mark

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

  • Absolute poverty considers income levels, while relative poverty focuses on unemployment

  • Absolute poverty is determined by government policies, while relative poverty is influenced by cultural factors

  • Absolute poverty is based on a fixed income threshold, while relative poverty is relative to the cost of living

  • Absolute poverty is limited to urban areas, while relative poverty affects rural regions

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7
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1 mark

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

  • Increased economic growth

  • Reduced social and economic stability

  • Greater access to healthcare and education

  • Lower levels of entrepreneurship

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1
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5 marks

Refer Extract

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

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2
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4 marks

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

9ec0-02-june-2017-q4

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

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3
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8 marks

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

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4
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8 marks

Refer Extract

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.

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1
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25 marks

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 (25)

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

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2
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15 marks

Although the provision of benefits ensures very few people in the UK are in absolute poverty, around 20% of the population were in relative poverty in 2020/21. This figure actually fell during the global pandemic.

Discuss the causes of changes in absolute and relative poverty (15)

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