Over the past decade, the richest fifth of households in Norvale has received a growing share of total household income, while the share received by the poorest fifth has fallen.
Which is the most likely effect of this change on total spending in Norvale?
Total spending may be lower than otherwise, as poorer households spend a larger share of their income
Total spending may be higher than otherwise, as poorer households save a larger share of their income
Total spending may be higher than otherwise, as richer households have more income to spend
Total spending is unaffected, as it depends only on the total income households receive
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.