Cambridge International (CAIE) · 3 Government microeconomic intervention (AS) · 3.3 Addressing income and wealth inequality

Cambridge International (CAIE) Economics past paper questions: Addressing income and wealth inequality

Every Cambridge International (CAIE) question on Addressing income and wealth inequality from 2023 to 2025: 3 essays, 3 data response questions and 14 multiple choice questions. It covers 3.2 Methods and effects of government intervention in markets, 4.5 Unemployment, 6.3 Current account of the balance of payments, 4.3 Aggregate demand and aggregate supply analysis and 5.4 Supply-side policy. Each question links to its paper, mark scheme and examiner report.

Filter these in the tool

Subtopics3.2 Methods and effects of government intervention in markets 24.5 Unemployment 26.3 Current account of the balance of payments 14.3 Aggregate demand and aggregate supply analysis 15.4 Supply-side policy 1

Essay questions on addressing income and wealth inequality

Data response questions on addressing income and wealth inequality

Multiple choice questions

  1. AS Paper 1, November 2025, Q14

    The income Gini coefficient of a country changes from 0.29 to 0.33 over time. What might explain this change?

  2. AS Paper 1, November 2025, Q24

    What is the most likely reason for a government to introduce a progressive tax?

  3. AS Paper 1, June 2025, Q12

    What would not be included in the calculation of an individual’s wealth?

  4. AS Paper 1, June 2025, Q23

    An income tax has a tax-free allowance of $10 000 and a single rate of 25%. What type of tax is this?

  5. AS Paper 1, March 2025, Q14

    Why is it more difficult to quantify the wealth of an individual rather than their income?

  6. AS Paper 1, March 2025, Q15

    The table shows the Gini coefficient for income in three countries. What can be concluded from this data?

  7. AS Paper 1, March 2025, Q25

    What defines a progressive tax?

  8. AS Paper 1, November 2024, Q13

    Inequality in an economy can be categorised as either income inequality or wealth inequality. What is most likely to cause greater wealth inequality than income inequality?

  9. AS Paper 1, March 2024, Q12

    A policy that aims to reduce the degree of inequality of income will also reduce the level of employment in a country. What is most likely to be such a policy?

  10. AS Paper 1, March 2024, Q14

    A country uses an income tax under which the first $10 000 of income is tax-free, the next $20 000 is taxed at 20% and any income over $30 000 is taxed at a top rate of 40%. It also levies a sales tax of 10% on most products. Which…

  11. AS Paper 1, November 2023, Q14

    What is most likely to be regressive?

  12. AS Paper 1, November 2023, Q15

    What is necessary for an action to be classed as a transfer payment?

  13. AS Paper 1, November 2023, Q27

    Which tax may a government use to reduce inequality?

  14. AS Paper 1, March 2023, Q14

    The table shows Gini coefficients for both income and wealth in two countries. Which statement is correct?

More Cambridge International (CAIE) topics: 3 Government microeconomic intervention (AS)

Reasons for government intervention in marketsMethods and effects of government intervention in markets

Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), 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.