Cambridge International (CAIE) · 8 Government microeconomic intervention (A Level) · 8.2 Equity and policies towards income and wealth redistribution

Cambridge International (CAIE) Economics past paper questions: Equity and policies towards income and wealth redistribution

Every Cambridge International (CAIE) question on Equity and policies towards income and wealth redistribution from 2023 to 2025: 3 data response questions and 16 multiple choice questions. It covers 9.3 Employment and unemployment, 7.3 Efficiency and market failure, 8.1 Government policies to achieve efficient resource allocation and correct market failure and 11.4 Characteristics of countries at different levels of development. Each question links to its paper, mark scheme and examiner report.

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Subtopics9.3 Employment and unemployment 27.3 Efficiency and market failure 28.1 Government policies to achieve efficient resource allocation and correct market failure 111.4 Characteristics of countries at different levels of development 1

Data response questions on equity and policies towards income and wealth redistribution

Multiple choice questions

  1. A-level Paper 3, November 2025, Q10

    A government has a policy where income tax is paid only after the first $20 000 of income has been earned. What would make the government’s policy more equitable?

  2. A-level Paper 3, November 2025, Q20

    A government funds an increase in transfer payments to the unemployed by increasing the higher rate of income tax. What is the most likely impact of this change?

  3. A-level Paper 3, November 2025, Q28

    The diagram shows a Lorenz curve of the distribution of income of households for a country. Which curve shows the most equal distribution of income of households?

  4. A-level Paper 3, June 2025, Q10

    A worker has a low wage. They have little incentive to earn extra income because they will pay more income tax and receive fewer means-tested benefits. What describes this worker’s situation?

  5. A-level Paper 3, June 2025, Q25

    Which policy will help to reduce income inequality?

  6. A-level Paper 3, March 2025, Q9

    When does a more equal distribution of income occur?

  7. A-level Paper 3, November 2024, Q15

    Countries in South East Asia have some of the highest income inequality in the world. Which policy could be adopted by governments in South East Asia to reduce income inequality in the short run?

  8. A-level Paper 3, November 2024, Q24

    What indicates that a more equal distribution of income has been achieved?

  9. A-level Paper 3, November 2024, Q29

    The diagram shows two Lorenz curves. If the Lorenz curve shifts from L1 to L2, what is least likely to have caused this?

  10. A-level Paper 3, March 2024, Q29

    The Lorenz curves in the diagram show different distributions of income and of wealth. At first, income in a country is more equally distributed than wealth. In a period, the distribution of income becomes more unequal but the distribution…

  11. A-level Paper 3, November 2023, Q12

    What is the economic result of a universal basic income (UBI)?

  12. A-level Paper 3, November 2023, Q13

    Which combination of fiscal policy measures would be most effective in reducing income inequality?

  13. A-level Paper 3, November 2023, Q27

    When assessing income distribution in an economy, which change in the Gini coefficient suggests that a country is distributing its income more equally?

  14. A-level Paper 3, June 2023, Q15

    What is likely to cause a more equal distribution of income in the long run?

  15. A-level Paper 3, March 2023, Q14

    Which changes in direct and indirect tax are likely to increase the inequality in the distribution of income in a developed economy?

  16. A-level Paper 3, March 2023, Q16

    In a country, the top 20% of earners pay 45% in income tax and 25% on sales taxes, and receive 5% in cash benefits. What is the percentage of disposable income for this group?

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.