Practise distinguishing income flows from wealth stocks, interpreting Gini evidence, explaining inequality and evaluating progressive taxes, transfers and labour-market policies.
The Gini coefficient for South Korea was estimated to be 0.39 in 2019 and 0.33 in 2022.
Explain what this data means, how it might be used by the government of South Korea and consider its usefulness.
Assess why it is easier for a government such as that of South Korea to redistribute income rather than redistribute wealth.
Section C
Answer one question.
EITHER
What would be included in a measure of wealth?
annual income
benefits and pensions
interest earned on savings
savings held in bank accounts
The income Gini coefficient of a country changes from 0.29 to 0.33 over time.
What might explain this change?
an increase in food and energy subsidies
an increase in structural unemployment
an increase in the national minimum wage
an increase in the top rate of income tax
What is the most likely reason for a government to introduce a progressive tax?
to discourage the consumption of a particular good
to distribute disposable income more evenly
to increase the disposable income of households
to reduce demand for healthcare services
