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

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Question 17

An unequal distribution of income and wealth can result in market failure because

A

the price mechanism allocates resources according to consumers' ability to pay rather than their needs.

B

progressive taxation policies aimed at reducing inequality lead to government failure.

C

private firms are unable to profit from providing merit goods to high-income consumers.

D

lower-income individuals have a lower marginal propensity to consume than higher-income individuals.

Markscheme

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)

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.

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