Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

Income inequality may be assessed using the Gini coefficient. It is measured on a scale from 0 to 100, and a larger figure indicates a higher level of inequality. The table below gives three Gini coefficient values for four OECD countries. The first comes from wages alone, the second includes government welfare payments, and the third includes welfare payments together with government spending on health and education. In which country did welfare payments contribute most to income redistribution?

  • A36.8; 25.9; 18.1
  • B40.5; 31.3; 24.8
  • C40.6; 26.1; 22.3
  • D45.3; 37.0; 30.3

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