Equity and redistribution of income and wealth
8.2What the syllabus asks of you
- difference between equity and equality
- difference between equity and efficiency
- distinction between absolute poverty and relative poverty
- the poverty trap
- policies towards equity and equality, for example: negative income tax
- policies towards equity and equality, for example: universal benefits and means-tested benefits
- policies towards equity and equality, for example: universal basic income
Drill this topic
Every question on Equity and redistribution of income and wealth, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
17 questions
1May / June 2026 · Paper 34 · Q10Show mark scheme →
Aprogressive income tax, means-tested benefits
Bprogressive income tax, universal benefits
Cproportional income tax, means-tested benefits
Dproportional income tax, universal benefits
Mark scheme
2Oct / Nov 2025 · Paper 31 · Q10Show mark scheme →
Alegal minimum wage
Bmeans-tested benefits
Cprevention of cheaper imports
Dproportional taxation
Mark scheme
3Oct / Nov 2025 · Paper 34 · Q9Show mark scheme →
AA firm that installs ramps to its workplace to improve the access for people with disabilities.
BA government subsidy on rice of $0.10 per kilo for all members of the public.
CA university admissions policy that offers places to students from disadvantaged socio-economic backgrounds.
DAn income tax system where high-income earners pay a higher percentage of income as tax.
Mark scheme
4Oct / Nov 2025 · Paper 34 · Q13Show mark scheme →
Aindividual's tax-free allowance for income tax decrease; national minimum wage in real terms increase
Bindividual's tax-free allowance for income tax decrease; national minimum wage in real terms unchanged
Cindividual's tax-free allowance for income tax increase; national minimum wage in real terms increase
Dindividual's tax-free allowance for income tax increase; national minimum wage in real terms unchanged
Mark scheme
5May / June 2025 · Paper 31 · Q11Show mark scheme →
Anational minimum wage is changed
Bbenefits payments are means-tested
Csubsidised housing payments for low-income earners are increased
Dthe income level at which income tax is first paid is increased
Mark scheme
6May / June 2025 · Paper 32 · Q10Show mark scheme →
Aemployment trap
Bliquidity trap
Cpoverty trap
Dunemployment trap
Mark scheme
7May / June 2025 · Paper 33 · Q11Show mark scheme →
Anational minimum wage is changed
Bbenefits payments are means-tested
Csubsidised housing payments for low-income earners are increased
Dthe income level at which income tax is first paid is increased
Mark scheme
8Oct / Nov 2024 · Paper 33 · Q15Show mark scheme →
Aindividual's tax-free allowance for income tax: decrease; proportion of all benefits that are means-tested: increase
Bindividual's tax-free allowance for income tax: decrease; proportion of all benefits that are means-tested: decrease
Cindividual's tax-free allowance for income tax: increase; proportion of all benefits that are means-tested: increase
Dindividual's tax-free allowance for income tax: increase; proportion of all benefits that are means-tested: unchanged
Mark scheme
9May / June 2024 · Paper 31 · Q13Show mark scheme →
AA household earns less than the international poverty line of $2.15 per person per day.
BA household spends more than it earns in a month.
CA household’s earnings rise at a lower rate than the rise in inflation.
DAn extra dollar earnt by a household causes a greater loss in government benefit payments.
Mark scheme
10May / June 2024 · Paper 33 · Q13Show mark scheme →
AA household earns less than the international poverty line of $2.15 per person per day.
BA household spends more than it earns in a month.
CA household’s earnings rise at a lower rate than the rise in inflation.
DAn extra dollar earnt by a household causes a greater loss in government benefit payments.
Mark scheme
11Oct / Nov 2023 · Paper 32 · Q12Show mark scheme →
Areduces the incentive to work: no; improves equality: no
Breduces the incentive to work: no; improves equality: yes
Creduces the incentive to work: yes; improves equality: no
Dreduces the incentive to work: yes; improves equality: yes
Mark scheme
12Oct / Nov 2023 · Paper 33 · Q13Show mark scheme →
Aincreasing means-tested benefit levels
Bincreasing the power of trade unions
Cmaking the tax system more progressive
Dremoving the national minimum wage
Mark scheme
13Oct / Nov 2022 · Paper 31 · Q13Show mark scheme →
Adebt trap
Bliquidity trap
Cpoverty trap
Dunemployment trap
Mark scheme
14Feb / March 2022 · Paper 32 · Q15Show mark scheme →
Awhen control of demand-pull inflation is the priority
Bwhen equality is valued more highly than efficiency
Cwhen monetary reward is the best incentive to risk-taking
Dwhen the rich have higher marginal utility curves than the poor
Mark scheme
15Oct / Nov 2021 · Paper 32 · Q14Show mark scheme →
Aprice stabilisation
Bpoverty trap
Creplacement ratio
Dunemployment trap
Mark scheme
16Oct / Nov 2021 · Paper 33 · Q14Show mark scheme →
AEquality amongst young adults will decrease.
BEquality amongst the elderly will decrease.
CIntergenerational equality will increase.
DThere will be an increase in transfer payments.
Mark scheme
17Feb / March 2021 · Paper 32 · Q16Show mark scheme →
AA female worker is paid less than a male worker for doing the same job.
BA worker is paid the minimum wage and refuses a higher paid job because net income is lower after tax.
CA worker refuses higher paid work as it means more expensive travel and childcare costs.
DAn unemployed worker refuses a job because earnings are less than unemployment benefit.
Mark scheme