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Economics (AS & A Level) · May / June 2026 · Paper 13 · Question 13

9708Addressing income and wealth inequality

The Gini Coefficient of a country rises from 0.45 to 0.49. What is the most likely explanation of this increase in the Gini Coefficient?

  1. Aincomes are distributed more equally
  2. Bthe taxation system has become more progressive
  3. Clow-income workers have acquired new skills
  4. Dthere is a reduction in welfare payments

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Correct answer: D. there is a reduction in welfare payments

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