CAIE IGCSE Economics 5.2.3 Policies to Alleviate Poverty and Redistribute Income Questions

Practise Cambridge IGCSE Economics by explaining redistribution and anti-poverty policies, then evaluating their effects on inequality, living standards and incentives.

Exam points

Identify policies to reduce poverty, including progressive taxation, benefits, education, healthcare and employment support.
Explain how redistribution changes income inequality and living standards, using tax and government-spending measures.
Evaluate the effectiveness of an anti-poverty policy, weighing incentives, financing, targeting and long-run opportunities.

[Maximum number: 1]

In many high-income economies, increasing income inequality has led to greater levels of poverty.
Which combination of policies would aim to reduce income inequality?

fiscal policy

supply-side policy

decrease corporation tax

create more competition

increase income tax

reduce the power of trade unions

increase inheritance tax

increase the national minimum wage

increase sales tax

privatise more public sector firms

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CAIE IGCSE Economics 5.2.3 Policies to Alleviate Poverty and Redistribute Income Questions question 1