Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 30

The turning point on the Kuznets curve for income inequality has been estimated to be in the region of US$10 500. For a country that has a GDP per capita of $8000, what is most likely?

1. AA reduction in GDP per capita will have no effect on income inequality.
2. BA reduction in GDP per capita will increase income inequality.
3. CAn increase in GDP per capita will have no effect on income inequality.
4. DAn increase in GDP per capita will increase income inequality.

As printed in the paper