Economics · May / June 2021 · Paper 12 · Question 25

The richest 60% of the population of a high-income economy received an increase in income. The income of the rest of the population did not change. What happened to absolute and relative poverty?

1. Aabsolute poverty increased; relative poverty increased
2. Babsolute poverty increased; relative poverty remained constant
3. Cabsolute poverty remained constant; relative poverty increased
4. Dabsolute poverty remained constant; relative poverty remained constant

As printed in the paper