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3a:Tc96,- Explains the concept of market forces and how they relate to the Gini coefficient or Lorenz curve B1 - Defines and explains skill-biased technological change (SBTC) as a key market force driving wage disparities B1 - Defines and explains the role of globalisation, including trade integration and offshoring, in changing labour demand B1 - Identifies other non-market causes, such as changes in fiscal policy, taxation, or state welfare systems B1 - Identifies institutional changes in the labour market, such as falling union density and the growth of the gig economy B1 - References relevant data or trends for a specific developed economy, such as the US, Germany, or the UK B1 - Applies economic concepts and frameworks specifically to the chosen developed economy A1 - Integrates specific country examples of globalisation or technological disruption impacting local industries A1 - Uses precise economic terminology throughout the application to the chosen country A1 - Provides contextual evidence of state intervention or policy shifts in the chosen country A1 - Analyses how technological change increases the demand for high-skilled workers and depresses wages for low-skilled workers M1 - Analyses how globalisation shifts low-skilled manufacturing to lower-wage economies, reducing domestic wages in advanced economies M1 - Analyses how market power, superstar firms, and executive compensation standards contribute to inequality at the top end of the distribution M1 - Analyses how the decline of collective bargaining or minimum wage stagnation contributes to widening income gaps M1 - Analyses the link between fiscal policy changes (such as reductions in top marginal tax rates) and disposable income distribution M1 - Analyses the impact of benefit cuts, freezing of transfers, or welfare reforms on lower-income households M1 - Links the analysis of these causes directly to changes in the Gini coefficient or Lorenz curve M1 - Discusses the transmission mechanisms of wage stagnation to overall household income inequality M1 - Evaluates the relative importance of market forces (technology and globalisation) compared to government policies (taxes and benefits) C1 - Evaluates the role of institutional factors (trade unions, labor regulations) versus pure market forces C1 - Evaluates the short-run versus long-run impacts of technological transitions on inequality C1 - Compares the experience of different developed countries to assess if domestic policy can mitigate market-driven inequality C1 - Critically assesses whether inequality is an inevitable outcome of globalisation or a choice of national economic models C1 - Explores the feedback loops between rising inequality and political/economic influence C1 - Reaches a clear, well-supported conclusion that synthesises the arguments and makes a reasoned judgment C13b:T466,- Identifies a first valid cause of income inequality, such as skill-biased technological change/automation, globalization, changes in tax/benefit structures, or the growth of the gig economy B1 - Explains how this first cause leads to wage polarization, structural unemployment, or divergent income growth M1 - Integrates developed economy context or examples (e.g., the rise of high-paying tech jobs versus automated administrative roles) to illustrate the first cause A1 - Identifies a second valid cause of income inequality, distinct from the first and the excluded factors B1 - Explains how this second cause creates or exacerbates income disparities among different groups of workers or households M1 - Integrates developed economy context or examples to illustrate the second cause A1 - Demonstrates how these causes impact overall measures of inequality, such as the Gini coefficient or the Lorenz curve A1 - Constructs a coherent, logical argument using precise economic terminology throughout C13c:Tdc2,- Defines inequality, Gini coefficient, and the Lorenz curve in the context of the question. B1 - Identifies and explains skill-biased technological change (SBTC) as a driver of wage polarisation. M1 - Identifies and explains how globalisation and offshoring reduce the demand for low-skilled domestic labor. M1 - Explains the role of trade union density decline and weakening collective bargaining. M1 - Explains the impact of regressive tax reforms, such as reductions in top marginal tax rates. M1 - Explains how cuts or freezes to welfare benefits and transfer payments increase net income inequality. M1 - Explains the growth of the gig economy and zero-hour contracts leading to underemployment and low pay. M1 - Explains how market concentration and monopoly power allow rent-seeking and extreme executive pay. M1 - Applies these concepts to a chosen developed economy with specific real-world examples (e.g., UK, USA, Germany). A1 - Uses appropriate economic diagrams, such as the Lorenz curve or labor market demand/supply shifts, to support the analysis. A1 - Connects the structural shifts in the economy to regional disparities in income. A1 - Explains how educational inequality reinforces the skill premium and market-driven income divergence. A1 - Assesses the relative significance of international forces (globalisation, technology) versus domestic policy choices. M1 - Argues that globalisation and technology are exogenous shocks, but the final impact on inequality depends on domestic policy cushions. M1 - Discusses how tax competition in a globalised world limits domestic policy space (the 'race to the bottom' in corporate and top income taxes). M1 - Contrasts different developed economies (e.g., US vs. Sweden) to demonstrate that identical global forces produce different inequality outcomes due to domestic institutions. M1 - Evaluates the short-run vs. long-run distinction: technological shocks cause transitionary inequality, while policy failure causes permanent structural inequality. M1 - Evaluates whether rising inequality is driven more by the top 1% (rent-seeking/super-salaries) or the bottom 20% (welfare cuts/low wages). M1 - Weighs the effectiveness of active labor market policies (retraining) versus passive transfer payments in combating technological unemployment. M1 - Discusses the endogeneity problem: global economic power translates to political lobbying, meaning international forces shape domestic policy. A1 - Provides a clear, reasoned judgment on which factor has been the primary driver, supported by robust economic reasoning. A1 - Qualifies the conclusion by noting that the two sets of factors are deeply interdependent and cannot be fully isolated. A1 - Evaluates the reliability and limitations of data (e.g., Gini vs. Palma ratio, underreporting of top incomes) in measuring the true extent of inequality. A1 - Discusses the macroeconomic consequences: how high inequality might depress aggregate demand, influencing further policy responses. A1 - Evaluates the normative aspect: whether some level of inequality is necessary for incentives vs. the high cost of extreme inequality. 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4.2.2 Inequality

Question 2

4.2.2 Inequality Questions

4.2.2 Inequality

Question 2

4.2.2 Inequality Questions