Northport and Southport are similar-sized economies. The table shows the distribution of disposable income and movement between income groups.
| Measure | Northport | Southport |
|---|---|---|
| Share of disposable income received by the poorest fifth of households | 6% | 9% |
| Share of disposable income received by the richest fifth of households | 42% | 36% |
| Children brought up in the poorest fifth who are in one of the richest two fifths as adults | 30% | 12% |
Evaluate the view that the distribution of income in Northport is more likely to limit its output than the distribution of income in Southport. Use the data to support your answer.
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.