Edexcel A · Theme 4: A global perspective · 4.2 Poverty and inequality

Edexcel A Economics past paper questions: Poverty and inequality

Every Edexcel A question on Poverty and inequality from 2017 to 2024: 2 essays, 6 data response questions, 2 short answer questions and 3 multiple choice questions. It covers International economics. Each question links to its paper, mark scheme and examiner report.

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SubtopicsInternational economics 1

Essay questions on poverty and inequality

A-level Paper 3, June 2023, Q1(d)OptionalEvaluate25 marks

Case study: The UK economy

Evaluate microeconomic and macroeconomic policies that could be used to reduce inequality in the UK.

Examiner insight

What to cover
Cover both sides. Micro: minimum wage, education and training, regional policy. Macro: progressive taxation, transfer payments, universal credit, inheritance and wealth taxes.
Watch out
Describing inequality rather than evaluating the policies. The question asks for policies and their effects.
Question paper p.4Mark scheme p.10Examiner report p.13Open in the tool
A-level Paper 2, November 2020, Q8Optional25 marks
In terms of income distribution and wealth distribution Brazil is one of the most unequal countries in the world. Its income Gini coefficient is 0.449 and it is ranked number 2 in the world for its wealth inequality. Evaluate possible economic causes of income and wealth inequalities within a country such as Brazil. (Source: https://www.gfmag.com/)

Examiner insight

What to cover
Explain causes: wage gaps from skills and education, unemployment, regressive tax and benefit systems, unequal land and asset ownership, and returns on capital outgrowing wages. Apply to the Brazilian Gini of 0.449.
Watch out
Drifting into the effects of inequality or into policies to reduce it, when the question asks only for causes.
Question paper p.26Mark scheme p.20Examiner report p.5Open in the tool

Data response questions on poverty and inequality

A-level Paper 2, June 2024, Q6(a)Explain5 marks

Case study: The UK Economy

With reference to Figure 4 and your own knowledge, explain the distinction between a progressive and a regressive tax.

Examiner insight

What to cover
A progressive tax takes a rising proportion of income as income rises, such as UK income tax. A regressive tax takes a falling proportion, such as VAT. Use Figure 4 to identify which is which.
Watch out
Defining progressive as simply paying more tax, rather than paying a higher proportion of income.
Question paper p.16Mark scheme p.15Examiner report p.22Open in the tool
A-level Paper 2, June 2022, Q6(a)5 marks

Case study: UK Government spending and inequality

Using a Lorenz curve diagram, explain how income inequality is measured using the Gini coefficient. Refer to Extract A in your answer.

Examiner insight

What to cover
Define the Lorenz curve as cumulative share of income plotted against cumulative share of population. The Gini is area A divided by area A plus B, running from 0 to 1, with higher values meaning more inequality.
Watch out
Drawing the curve above the line of equality, or quoting a Gini value without explaining the areas it comes from.
Question paper p.15Mark scheme p.10Examiner report p.21Open in the tool
A-level Paper 2, June 2022, Q6(b)8 marks

Case study: UK Government spending and inequality

With reference to Figure 1 and Extract A, examine two likely causes of income inequality within the UK.

Examiner insight

What to cover
Pick two causes, such as differences in skills and education widening wage differentials, and unemployment or low paid part time work. Use the Figure 1 data on the UK income distribution.
Watch out
Explaining the consequences of inequality rather than its causes, and quoting no data from Figure 1.
Question paper p.15Mark scheme p.11Examiner report p.23Open in the tool
A-level Paper 2, June 2018, Q6(a)Explain5 marks

Case study: Globalisation and Inequality

With reference to the information provided, explain the distinction between absolute poverty and relative poverty.

Examiner insight

What to cover
Define absolute poverty as income below a fixed subsistence line, such as the international dollar per day measure. Define relative poverty as income below a set share of median income in that country. Apply the data given.
Watch out
Giving two textbook definitions without applying them to the poverty figures provided.
Question paper p.15Mark scheme p.9Examiner report p.20Open in the tool
A-level Paper 2, June 2018, Q6(b)Explain8 marks

Case study: Globalisation and Inequality

With reference to the information provided and your own knowledge, examine two factors that might explain the differing rates of decline in absolute poverty in East Asia and Sub-Saharan Africa.

Examiner insight

What to cover
Compare two factors. East Asia gained from export led manufacturing, inward FDI and investment in education. Sub Saharan Africa faced primary product dependency, weak institutions, conflict and poor infrastructure, slowing the fall in poverty.
Watch out
Listing general causes of poverty without comparing the two regions the question names.
Question paper p.15Mark scheme p.10Examiner report p.22Open in the tool
A-level Paper 2, June 2018, Q6(d)Assess10 marks

Case study: Globalisation and Inequality

Assess the view that ‘some level of inequality is desirable to maintain an appropriate incentive structure in the economy’ (Extract B, lines 19 and 20).

Examiner insight

What to cover
Explain the incentive argument in Extract B. Wage differentials reward skills, effort and risk taking, so people train, work harder and start businesses. This raises labour mobility, productivity and economic growth.
Watch out
Arguing all inequality is bad without engaging with the incentive argument the question quotes.
Question paper p.15Mark scheme p.14Examiner report p.30Open in the tool

Short answer questions on poverty and inequality

Multiple choice questions

  1. A-level Paper 2, June 2019, Q5(c)

    Which one of the following would be most likely to reduce a country’s Gini coefficient? An increase in:

  2. A-level Paper 2, June 2017, Q4(b)

    Which one of the following values for the Gini coefficient is correct if there is perfect income equality?

  3. A-level Paper 2, June 2017, Q5(a)

    Which one of the following statements can be deduced from the data in the table?

Question text is quoted from the question papers, © Pearson Edexcel, 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.