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.
| Year | Lowest 20% | Second 20% | Third 20% | Fourth 20% | Top 20% | Total (%) |
|---|---|---|---|---|---|---|
| 2015 | 8 | 12 | 17 | 23 | 40 | 100 |
| 2016 | 7 | 11 | 16 | 22 | 44 | 100 |
| 2017 | 6 | 10 | 15 | 21 | 48 | 100 |
| 2018 | 7 | 11 | 15 | 22 | 45 | 100 |
| 2019 | 8 | 12 | 16 | 22 | 42 | 100 |
| 2020 | 8 | 12 | 16 | 22 | 42 | 100 |
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.
76 exam-style questions on AQA A Level Economics 1.7 The distribution of income and wealth: poverty and inequality (A-level only), covering 1.7.1 The distribution of income and wealth, 1.7.2 The problem of poverty, and 1.7.3 Government policies to alleviate poverty and to influence the distribution of income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.