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Pearson Edexcel IAL Economics 4.3.4.2c Causes of inequality in income &

Practise linking shifts in inequality to unemployment, training, transfer payments, tax structure and public spending decisions.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • interpret a Lorenz curve shift and select the likely cause from policy or labour-market changes
  • explain how education, training or lower unemployment may reduce income inequality
  • compare progressive and regressive tax changes using likely effects on income distribution

4.3.4.2c - Causes of inequality in income and wealth within countries and between countries question 1

[Maximum number: 1]

Armenia's Gini coefficient increased from 0.28 in 2009 to 0.34 in 2017.
Which one of the following is most likely to reduce Armenia's income inequality?

A

A reduction in the national minimum wage

B

An improvement in education and training

C

A decrease in progressive tax rates

D

An increase in regressive tax rates

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