Skip to content
MathsGenie logo
Open app

Course home

  1. A Level
  3. Economics AQA
  5. Question bank

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

EasyMediumHard
1234567891011121314151617181920212223242526272829303132333435
Question 23

An economy is experiencing a widening gap in both wealth and income inequality, with the Gini coefficient for wealth reaching 0.75 and the Gini coefficient for income reaching 0.45.

To address these disparities, the government is considering a comprehensive reform of inheritance tax, with all revenues ring-fenced to fund a universal capital endowment ('baby bonds' or capital grants) awarded to every citizen at age 25.

Evaluate whether this policy combination is the most effective method for a government to significantly reduce inequalities in both the distribution of income and the distribution of wealth.

[25]

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)