Worker P and Worker Q receive the same annual income throughout their working lives and begin with equal wealth. Worker P pays part of this income into a workplace pension. Worker Q spends the same amount on food and energy bills. All their other assets and debts are identical.
Who is most likely to have greater wealth at retirement?
Neither worker, because equal annual incomes result in equal wealth
Worker P, because pension contributions increase P's annual income
Worker P, because pension saving builds up an asset over time
Worker Q, because Q has spent more on goods and services over the years
64 exam-style questions on OCR GCSE Economics 3.3 Fair distribution of income, covering 3.3.1 Distribution of income and wealth, 3.3.2 Calculate income and wealth, and 3.3.3 Causes and consequences of income differences. Each one has a worked solution and a mark scheme showing where the marks go.