Economics 0455 · IGCSE · Fiscal policy

Fiscal policy — practice question

Workers' earnings affect the standard of living they can afford. Some workers are paid comparatively little. Governments have several methods of helping those on low pay.
(a)[2]

Identify two wage factors that workers consider when choosing an occupation.

(b)[4]

Explain two indicators used to measure living standards.

(c)[6]

Analyse how fiscal policy can lead to a more even spread of income.

(d)[8]

Discuss whether higher pay for low-paid workers would benefit an economy.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Wage rate/pay/earnings

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