WJEC · The global economy · Poverty and inequality

WJEC Economics past paper questions: Poverty and inequality

Every WJEC question on Poverty and inequality from 2017 to 2025: 1 essay, 3 data response questions, 1 short answer question and 1 multiple choice question. It covers Government intervention in markets, Public finances and the role of the state, Aggregate demand, Market failure and Economic growth and the economic cycle. Each question links to its paper, mark scheme and examiner report.

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SubtopicsGovernment intervention in markets 2Public finances and the role of the state 1Aggregate demand 1Market failure 1Economic growth and the economic cycle 1

Essay questions on poverty and inequality

A-level Unit 4, June 2024, Q3(a)OptionalExplain10 marks
Explain how economic growth can reduce inequality in an economy.

Examiner insight

What to cover
Link the two concepts, do not just describe them. Show how growth narrows the gap between high and low incomes: tighter labour markets raising wages fastest at the bottom, higher employment, and higher tax revenue funding redistribution.
Watch out
Inequality is not poverty. Most answers analysed how growth helps people on low incomes, which answers a poverty question. Stay on the gap between groups, and note that some types of growth widen it.
Question paper p.3Mark scheme p.12Examiner report p.20Open in the tool

Data response questions on poverty and inequality

AS Unit 1, June 2023, Q19(c)10 marks
Apart from progressive taxation, discuss policies the UK Government could use to only reduce income inequality within the economy.

Examiner insight

What to cover
Choose policies that genuinely target income inequality: the national living wage, benefits and universal credit, free or subsidised education and training, regional policy. Build multi step chains, A leads to B leads to C, for each.
Watch out
The question says apart from progressive taxation, so do not discuss it. Avoid policies only loosely linked to inequality, such as subsidies to firms or tariffs, because the analysis then rests on too many assumptions to earn AO3 marks.
Question paper p.17Mark scheme p.13Examiner report p.8Open in the tool
AS Unit 1, June 2017, Q18(c)8 marks
Using a Laffer Curve diagram, discuss whether increasing the additional rate of income tax can successfully reduce income inequality in the UK.

Examiner insight

What to cover
Link the two ideas explicitly. Use the Laffer curve to explain what a higher additional rate does to revenue, incentives, avoidance and migration of high earners, then say what each of those does to the gap between rich and poor.
Watch out
Drawing and explaining a Laffer curve with only a passing mention of inequality scored about 3 out of 8. The question tests the link between the two.
Question paper p.16Mark scheme p.12Examiner report p.4Open in the tool

Short answer questions on poverty and inequality

A-level Unit 3, June 2018, Q1010 marks
With reference to the data, discuss the view that government capital spending is a better method of reducing inequality in China than government current spending.

Examiner insight

What to cover
Keep the focus on inequality, not on general macro effects. Capital spending (infrastructure, transport into poorer inland provinces) raises long run earning capacity. Current spending (benefits, pensions, health, education salaries) redistributes income now. Use the Chinese data throughout.
Watch out
A significant number analysed the general macroeconomic effects of each type of spending instead of the effect on inequality. That is the wrong question.
Question paper p.14Mark scheme p.12Examiner report p.10Open in the tool

Multiple choice questions

  1. AS Unit 1, June 2025, Q7

    'Its consumption provides benefits to society beyond those recognised by the individual consumer, leading to underconsumption in the free market.' What economic concept is being described here?

Question text is quoted from the question papers, © WJEC CBAC Ltd, 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.