As more people become billionaires, others are still living in poverty. Some people enjoy luxuries while others do not even have the most basic necessities. To help more people reach a minimum standard of living, some economists favour the redistribution of income.
(a)[2]
What does ‘redistribution of income’ mean?
(b)[4]
Explain two reasons why total spending is higher for the rich than for the poor.
(c)[6]
Analyse why ending absolute poverty would not resolve the economic problem.
(d)[8]
Discuss whether Gross Domestic Product (GDP) per head is the most appropriate measure of comparative living standards.
Worked solution & mark scheme
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