Exam code: 7136
1 markIn 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 income.
It can be concluded that, over this period, the distribution of income is most likely to have become
more equal.
more equal but less equitable.
more equitable.
more equitable but less equal.
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1 markAll 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
amount of government tax revenue.
average standard of living.
level of median income.
share of income of the lowest quintile.
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1 markWhich one of the following policies is most likely to have an immediate effect in helping to reduce the amount of poverty in the UK?
An increase in government subsidies for buyers of electric cars.
A shift in the burden of taxation from direct to indirect taxes
Setting a price floor for basic foods
The introduction of a price ceiling for household energy
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1 markThe information below shows the changes in key economic indicators for a country over a period of one year.
Money GDP | Rate of inflation | Population increase | Gini coefficient |
+6% | +4% | +1% | -8% |
Which one of the following values for the Gini coefficient shows the greatest inequality?
-0.5
0
0.5
1
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