The percentage share of total income received by the poorest 10% of households in an economy rose over a three-year period. Over the same period, the share received by the richest 10% of households fell, whilst real GDP and the total population remained constant. It can be concluded that:
the distribution of income in this economy became more equitable.
the absolute income of all households in the middle income groups increased.
the Gini coefficient for this economy must have increased.
the absolute gap between the single richest household and the single poorest household became smaller.
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.