In Estmere, many households rely on part-time work with insecure hours, while the incomes of the richest households have risen quickly. The gap between the richest and poorest households has widened.
What is a possible consequence of this for the government's finances?
Lower spending on benefits, because average income in Estmere has risen
Lower spending on benefits, because high earners' spending reaches poorer households
Higher spending on benefits, with little tax collected from low earners
Unchanged spending on benefits, because only the sharing of income has changed
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.