Edexcel IGCSE Economics 2.1.1.f redistribution of income

Practise redistribution questions by defining poverty or inequality and explaining taxes, benefits or healthcare provision for low-income groups.

Exam points

Distinguish income inequality, absolute poverty and relative poverty in definitions.
Explain how progressive taxation funds services or benefits for low-income groups.
Evaluate benefits or healthcare provision using poverty and living standards.

[Maximum number: 3]

In March 2021, the Scottish Government announced a package of measures worth $£ 37.2 \mathrm{~m}$ . This money is to be given to low income households to tackle poverty and inequality in Scotland.

Explain one possible reason why the Scottish Government wants to reduce poverty and inequality.

A02 3 marks

Award 1 mark for identifying a relevant reason

Award 1 mark for developing the reason

Award 1 mark for the response being in context

- One reason is to meet basic needs (1). Many people do not have enough income for food and shelter (1). By investing $£ 37.2 \mathrm{~m}$ fewer low income households may suffer from poverty (1)

- One reason is to raise standards of living (1). Low income households would be able to access more goods and services (1) resulting in fewer low income households suffering from relative poverty (1)

Accept any other appropriate response

(3)

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2.1.1.f Redistribution of income question 1