Economics (AS & A Level) · Oct / Nov 2021 · Paper 33 · Question 14

A report in the UK suggests that means-tested benefits (benefits that are paid depending on income) should be introduced for benefit payments to the elderly and that any money saved should be used to pay means-tested benefits to young adults. This is because some elderly people now have high levels of real income. Which outcome is most likely?

1. AEquality amongst young adults will decrease.
2. BEquality amongst the elderly will decrease.
3. CIntergenerational equality will increase.
4. DThere will be an increase in transfer payments.

As printed in the paper