The gap between rich and poor appears to be increasing in many societies, including the UK.
- Using diagrams evaluate the likely impact of an increase in the level of the national minimum wage.
- Apart from a national minimum wage, analyse the impact of other methods of reducing inequality in a modern economy.
- What are the likely effects on equity of increases in:
The value of property
The progressiveness of income tax
The level of unemployment
- Analyse how changes in the degree of income inequality in an economy can be measured. (15)
- Discuss the extent to which reform of the tax and benefit system alone can reduce the level of income inequality in an economy. (25)