The table below shows the distribution of disposable income by quintiles (percentage share of total disposable income) in a hypothetical economy from 2018 to 2023.
| Year | Lowest 20% | Second 20% | Third 20% | Fourth 20% | Top 20% | Total (%) |
|---|---|---|---|---|---|---|
| 2018 | 9 | 13 | 18 | 24 | 36 | 100 |
| 2019 | 8 | 11 | 16 | 23 | 42 | 100 |
| 2020 | 6 | 9 | 14 | 21 | 50 | 100 |
| 2021 | 7 | 10 | 15 | 22 | 46 | 100 |
| 2022 | 9 | 12 | 17 | 23 | 39 | 100 |
| 2023 | 9 | 12 | 17 | 23 | 39 | 100 |
From the data, it can be concluded that
between 2018 and 2020, the distribution of disposable income became more equal.
between 2020 and 2022, there was a decrease in the inequality of disposable income.
over the entire period shown, the absolute disposable income of the Third 20%20\%20% remained constant.
between 2018 and 2023, the poorest 20%20\%20% must have seen their absolute standard of living fall because their income share did not increase.
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.