Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

(a)[3]

Describe what the Gini coefficient means and the range of values it can take.

(b)[3]

Distinguish between absolute poverty and relative poverty.

(c)[6]

Consider whether Table 1.1 supports the conclusion that greater inequality of incomes is linked to poor literacy ratios of females to males and leads to greater poverty.

(d)[8]

Use one example of a supply-side policy and one example of a fiscal policy to assess how a government might be able to achieve greater equality in the distribution of income.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: The Gini co-efficient measures income inequality or, less commonly, wealth distribution among a population.

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