Inequality

Question 1

The gap between rich and poor appears to be increasing in many societies, including the UK.

1. Using diagrams evaluate the likely impact of an increase in the level of the national minimum wage.

2. Apart from a national minimum wage, analyse the impact of other methods of reducing inequality in a modern economy.

3. What are the likely effects on equity of increases in:

The value of property

The progressiveness of income tax

The level of unemployment

Question 2

 Essay

1. Analyse how changes in the degree of income inequality in an economy can be measured. (15)

2. Discuss the extent to which reform of the tax and benefit system alone can reduce the level of income inequality in an economy. (25)