IBEconomicsDPHLExam Questions3. Macroeconomics 3.4 Inequality & Poverty

3.4 Inequality & Poverty (DP IB Economics: HL)

Exam Questions

8 mins4 questions
12 marks

Text A, Paragraph 4

Despite many positive aspects, income inequality remains a significant concern in Thailand, with the economy ranking 98 out of 163 countries on global Gini-index rankings. However, the government has been striving to address this issue through education programmes, progressive taxation changes, and increased welfare benefits, moving from a Gini-index of 42.6 in 2010 to 36.4 in 2021.

Define the term progressive taxation indicated in bold (Text A, Paragraph 4).

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22 marks

Text C, Paragraph 1
In wealthier countries, such as the UK, relative poverty remains a pressing issue, especially as the cost of living rises, making it harder for some households to maintain a standard of living similar to others in society.

Define the term relative poverty as indicated in bold (Text C, Paragraph 1).

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32 marks

Text C, Paragraph 2
Recent economic reports highlight that South Africa’s Gini coefficient remains one of the highest globally, leading to ongoing discussions about economic reforms and strategies to address inequality.


Define the term Gini coefficient as indicated in bold (Text C, Paragraph 2).

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42 marks

Text D, Paragraph 3


The Multidimensional Poverty Index (MPI) has been increasingly adopted by developing countries to assess poverty levels, as it takes into account more than just income-based measures.


Define the term Multidimensional Poverty Index (MPI) as indicated in bold (Text D, Paragraph 3).

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