Quelpr
4 marksIncome Inequality, Poverty and Poverty Alleviation

CAPE Economics Unit 1 · 2007 · Paper 2 · Question 5(b)(iv)

State which distribution, (b) or (c), yields a higher Gini coefficient, explaining your reasoning.

This question uses a figure or table from the paper — you'll see it when you practise.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 5(a)(i)State what the diagonal line represents in Figure 1.[2 marks]
  2. 5(a)(ii)State what the vertical axis represents in Figure 1.[1.5 marks]
  3. 5(a)(iii)State what the horizontal axis represents in Figure 1.[1.5 marks]
  4. 5(a)(iv)State what Curve (b) represents in Figure 1.[1.5 marks]
  5. 5(a)(v)State what Curve (c) represents in Figure 1.[1.5 marks]
  6. 5(b)(i)Discuss the role of the diagonal line in depicting income inequality.[6 marks]
  7. 5(b)(ii)Explain what Lorenz curves (b) and (c) indicate regarding the distribution of household income between the highest 20% and lowest 20% of households.[10 marks]
  8. 5(b)(iii)Comment on the significance of the area between Curve (b) and Curve (c).[4 marks]
  9. 5(c)Explain the difference between absolute poverty and relative poverty.[6 marks]
  10. 5(d)Explain the term 'social welfare' and discuss how government subsidies for education influence social welfare.[12 marks]

More practice: the rest of this paper · more Income Inequality, Poverty and Poverty Alleviation questions · all CAPE Economics Unit 1 past papers