Extract 1: Rivera household incomes Rivera has experienced rising wages for highly qualified workers and increased house prices. The government is considering changes to tax and benefits.
| Income group | Share of total income | Average household wealth |
|---|---|---|
| Lowest 20% | 6% | £18,000 |
| Middle 60% | 49% | £210,000 |
| Highest 20% | 45% | £920,000 |
Using Extract 1, calculate the income share received by the lowest and highest groups together.
Explain why higher house prices may increase wealth inequality.
Analyse why income may be distributed unequally in Rivera.
State two types of income other than wages.
Explain one economic consequence of a more equal income distribution.
Evaluate whether more progressive taxation is the best way to make Rivera's distribution fairer.
29 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.