AQA · Microeconomics · Distribution of income and wealth

AQA Economics past paper questions: Distribution of income and wealth

Every AQA question on Distribution of income and wealth from 2016 to 2025: 7 essays, 8 data response questions and 15 multiple choice questions. It covers Inequality & poverty, Government intervention (micro) and Market failure (general). Each question links to its paper, mark scheme and examiner report.

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SubtopicsInequality & poverty 30Government intervention (micro) 1Market failure (general) 1

Essay questions on distribution of income and wealth

A-level Paper 1, June 2022, Q13Explain15 marks
Explain the main causes of inequality in the distribution of pre-tax incomes.

Examiner insight

What to cover
Pre-tax income differs because of differences in wages (skills, education, productivity, discrimination, union power, occupation), hours worked, and income from wealth (rent, interest, dividends).
Watch out
Keep the focus on pre-tax income. Taxes and benefits belong in another question.
Question paper p.7Mark scheme p.20Examiner report p.7Marked student answers p.69Open in the tool
A-level Paper 1, June 2022, Q14Evaluate25 marks
Evaluate whether the best way to reduce inequality in disposable income is to reduce differences in pre-tax incomes rather than through taxes and welfare benefits.

Examiner insight

What to cover
Reducing pre-tax differences: education and training, minimum wage, union bargaining. Redistribution: progressive taxes, means-tested benefits.
Watch out
Compare both approaches directly, and use the stimulus.
Question paper p.7Mark scheme p.21Examiner report p.8Marked student answers p.74Open in the tool
A-level Paper 1, June 2018, Q11Explain15 marks
Explain how the Lorenz curve and Gini coefficient may be used to illustrate increasing income inequality in a country.

Examiner insight

What to cover
The Lorenz curve moves further from the line of equality as inequality rises. The Gini coefficient is the area ratio and rises towards 1.
Watch out
Define the Gini coefficient correctly (A divided by A + B).
Question paper p.6Mark scheme p.19Open in the tool
A-level Paper 1, June 2018, Q12Assess25 marks
Assess the view that, in the UK, the consequences of wealth inequality are more damaging than the consequences of income inequality.

Examiner insight

What to cover
Wealth inequality: inheritance, housing, lower mobility, political influence. Income inequality: incentives, poverty, health.
Watch out
Keep income (a flow) and wealth (a stock) separate. Mixing them costs marks.
Question paper p.6Mark scheme p.20Open in the tool
A-level Paper 1, June 2017, Q11Explain15 marks
Explain the main causes of poverty in the UK.

Examiner insight

What to cover
Explain several causes and link each to low household income: unemployment and inactivity, low pay and low skills, part-time or insecure work, benefit levels, high housing costs, single-parent households, ill health and disability, regional decline.
Watch out
Define relative and absolute poverty first. Explain how each cause lowers income, rather than listing causes.
Question paper p.6Mark scheme p.19Open in the tool
A-level Paper 1, June 2017, Q12To what extent25 marks
To what extent can the problem of poverty in the UK be solved through the operation of market forces? Justify your answer.

Examiner insight

What to cover
Market forces: growth, job creation, rising wages, incentives to work and train.
Watch out
Give a judgement on "to what extent". Pure description of causes will not reach the top levels.
Question paper p.6Mark scheme p.20Open in the tool

Data response questions on distribution of income and wealth

A-level Paper 3, June 2024, Q31To what extent10 marks

Case study: Regional inequality in the UK

To what extent, if at all, do the data suggest that people living in the South East (SE) of England are better off than people living in the North East (NE) of England?

Examiner insight

What to cover
Compare income, employment, productivity and health between the SE and NE.
Watch out
Quote numbers from the extract.
Question paper p.22Mark scheme p.5Insert p.3Open in the tool
A-level Paper 1, June 2023, Q8Evaluate25 marks

Context 2: In-work poverty in the United Kingdom

Extract F (lines 1–2) states that ‘Charities and think tanks have called for action to reduce job insecurity, lower housing costs and increase earnings for low-paid workers.’ Using the extracts and your knowledge of economics, evaluate policies that could be used to reduce in-work poverty in the UK.

Examiner insight

What to cover
Policies: higher minimum wage, in-work benefits, childcare support, more social housing, training, action on insecure contracts.
Watch out
Use the extracts. Link each policy to a cause of in-work poverty.
Question paper p.5Mark scheme p.15Examiner report p.6Open in the tool
A-level Paper 1, Specimen, Q7Explain9 marks

Context 2: Inequality

Extract F (lines 9–10) states that ‘concentrating income in fewer and fewer hands eventually leads to bubble economies in which the prices of assets, such as houses and shares, rise continuously’. With the help of a diagram, explain how growing inequality might lead to a persistent rise in the price of houses.

Examiner insight

What to cover
Unequal income means more wealth held by high earners who buy assets. Show demand for housing rising faster than supply.
Watch out
Keep the focus on price rises being persistent: stress the inelastic supply of land and new homes.
Question paper p.5Mark scheme p.11Open in the toolDraw it: supply and demand diagram
A-level Paper 1, Specimen, Q8Assess25 marks

Context 2: Inequality

Extract E (lines 6–7) states that ‘growing inequality would create incentives, kick-start enterprise, boost growth and is good for us all’. Using the data in the extracts and your economic knowledge, assess the view that inequality is ‘good for us all.’

Examiner insight

What to cover
Give the case for inequality (incentives, enterprise, savings and investment) and the case against (lower mobility, poorer health, lower demand, social costs).
Watch out
Avoid a one-sided moral argument. The examiner wants economic reasons on both sides.
Question paper p.5Mark scheme p.12Open in the tool

Multiple choice questions

  1. A-level Paper 3, June 2025, Q23

    Which one of the following is most likely to lead to individuals who are currently in relative poverty remaining in relative poverty?

  2. A-level Paper 3, June 2024, Q5

    Table 1 shows the effect of cash benefits and taxes on household incomes in the UK in 2020–21. Table 1 Income of Income of top Ratio of top to bottom quintile quintile (£s) bottom quintile (£s) Original 107 551 8 196 13.1 income plus cash…

  3. AS Paper 1, June 2024, Q11

    An inequitable distribution of income may result in market failure because

  4. A-level Paper 3, June 2023, Q27

    Figure 7 shows the income distribution of a country in Year 1 and Year 2. Figure 7 From Figure 7, it can be concluded that income distribution has become

  5. AS Paper 1, June 2023, Q6

    The median income is higher in country W than in country Z. It can be concluded that

  6. A-level Paper 3, June 2022, Q16

    Which one of the following best explains the existence of relative poverty?

  7. A-level Paper 3, November 2020, Q5

    In an economy, over the last decade, each of the top five decile groups has experienced a fall in their share of total income. In contrast, the bottom five decile groups have experienced a substantial increase in their share of total…

  8. AS Paper 1, June 2020, Q18

    The percentage share of total income received by the poorest 20% of households in an economy rose over one year. Over the same period, the share received by the richest 20% of households fell whilst national income and population remained…

  9. A-level Paper 3, June 2019, Q14

    All other things being equal, which one of the following would be most likely to result in a reduction in inequality in the distribution of income in the UK? An increase in the

  10. A-level Paper 3, June 2018, Q22

    Which one of the following policies is most likely to have an immediate effect in helping to reduce the amount of poverty in the UK?

  11. AS Paper 1, June 2018, Q16

    Which one of the following statements about the distribution of income must be correct?

  12. A-level Paper 3, June 2017, Q11

    Which one of the following values for the Gini coefficient shows the greatest inequality?

  13. AS Paper 1, June 2017, Q16

    In an economy, the median total household wealth was £218 400 whilst the median total household income was £32 100. Which one of the following can be concluded from the above statement?

  14. AS Paper 1, June 2016, Q20

    Which one of the following statements about the distribution of income must be correct?

  15. A-level Paper 3, Specimen, Q7

    Which one of the following is used to measure inequality in the distribution of income?

Question text is quoted from the question papers, © AQA, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.