Edexcel A-Level Economics Past Paper Questions on Inequality

This article is a compilation of all the questions we could find on inequality from Edexcel’s published A-Level Economics past papers. Our goal is to help you study more effectively by putting all the questions for each A-Level Economics topic in one place. This page focuses on inequality but we have pages for a whole host of topics. Inequality is the difference in wealth, income, or opportunity between different citizens in a society.

What is the Edexcel Economics A-Level?

The Edexcel Economics A-Level is a course taken by students in their final two years of secondary school that prepares them to study economics or a related course at university. A-Level Economics covers introductory topics in both microeconomics and macroeconomics. You might find similar material in an introduction to economics course at university.

Edexcel is just one of many exam boards that offer A-Level Economics. Other options include AQA, Eduqas, and CIE. However, Edexcel is by far the largest provider of this course and you’ll find the most resources to support your study if you take A-Level Economics with Edexcel.

How did we find this Edexcel Economics past paper questions on inequality?

We found these Edexcel Economics past paper questions on inequality by going through all the Edexcel A-Level Economics past papers and pulling out questions relevant to inequality. You’ll find the questions listed below and a downloadable answer key at the bottom of the site.

What is inequality?

Inequality is the difference between the levels of income, wealth, and opportunity between different groups of people in society. The A-Level in economics focuses mostly on wealth and income inequality.

A number of economic factors can exacerbate levels of inequality, including increases in costs of living, income disparities due to discrimination, unequal access to financing, and economic growth. Economic growth is a strange cause of inequality but wealthier or more educated groups in society tend to benefit the most from economic growth as they can secure higher-paid jobs or own the businesses that grow with the economy.

The following are the three types of inequality:

• Income inequality: Income inequality is the disparity in the salaries paid to individuals from different social groups. Higher-skilled workers tend to earn more money than lower-skilled workers, which is partly determined by your education level. Additionally, some social groups may suffer from discrimination that lowers their average income levels.
• Wealth inequality: Wealth inequality is the difference in the wealth owned by different social groups. Wealth is the sum total of an individual’s assets – including homes, savings, and investments – minus that individual’s liabilities – their debts.
• Inequality of opportunity: Inequality of opportunity is the difference between options available to individuals from different social groups in society. Individuals may have unequal access to healthcare, job opportunities, and education.

Question 1: Edexcel A-Level Economics 9EC0 November 2020 Paper 2

In terms of income distribution and wealth distribution, Brazil is one of the most unequal countries in the world. Its income Gini coefficient is 0.449 and it is ranked number 2 in the world for its wealth inequality. Evaluate possible economic causes of income and wealth inequalities within a country such as Brazil. (25 points)

Question 2: Edexcel A-Level Economics 9EC0 May 2019 Paper 2

According to the charity Oxfam, the combined wealth of the 62 richest people in the world is the same as the wealth of the poorest half of the world’s population. The value of the combined wealth of the poorest half of the world’s population has fallen by 38% between 2010 and 2016.

(a) Explain the distinction between income and wealth. (2 points)

(b) Explain one likely reason why global wealth inequality has increased. (2 points)

(c) Which one of the following would be most likely to reduce a country’s Gini coefficient?

An increase in: (1 point)

A import tariffs

B progressive taxes

C regressive taxes

D value added tax

Question 3: Edexcel A-Level Economics 9EC0 June 2017 Paper 2

The chart below shows the UK Gini coefficient of incomes, 2007 to 2013.

(a) Explain one likely reason for the change in UK income inequality since 2007. (4 points)

(b) Which one of the following values for the Gini coefficient is correct if there is perfect income equality? (1 point)

A 0

B 0.5

C 1

D 50:50