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1.7 The distribution of income and wealth: poverty and inequality (A-level only)

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Question 8

The table below shows the distribution of disposable income by quintiles (percentage share of total disposable income) in a hypothetical economy from 2015 to 2020.

YearLowest 20%Second 20%Third 20%Fourth 20%Top 20%Total (%)
2015812172340100
2016711162244100
2017610152148100
2018711152245100
2019812162242100
2020812162242100

From the data, it can be concluded that

over the entire period shown, the absolute disposable income of the Third 20% remained constant.

between 2015 and 2017, the distribution of disposable income became more equal.

between 2017 and 2019, there was a decrease in inequalities of disposable income.

between 2015 and 2020, the poor became poorer and the rich became richer in absolute terms.

1.7 The distribution of income and wealth: poverty and inequality (A-level only) Questions

  1. A Level
  2. /Economics
  3. /1.7 The distribution of income and wealth: poverty and inequality (A-level only)