As more people become billionaires, other people are still living in poverty. Some enjoy luxuries while others do not even have the essentials. To help more people reach a minimum living standard, some economists support the redistribution of income.
(a)[2]
What does ‘redistribution of income’ mean?
(b)[4]
Explain two reasons why rich people spend more in total than poor people.
(c)[6]
Analyse why getting rid of absolute poverty would not solve the economic problem.
(d)[8]
Discuss whether Gross Domestic Product (GDP) per head is the most suitable measure of comparative living standards.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Income is taken from one group and passed to another” …