Poverty and Inequality | Edexcel A-Level Economics A (9EC0)
Poverty and Inequality
- 59 questions
- 3 subtopics
- Theme 4: a global perspective
- Paper 2 and Paper 3
Covers how poverty and inequality are defined and measured, why they arise, and the part the market itself plays in producing them..
It covers absolute and relative poverty, measuring inequality: the Lorenz curve and Gini coefficient and the causes of inequality, and capitalism's part in it.
Sample questions from Poverty and Inequality
Answer each one closed book first, then open the answer.
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Absolute and relative poverty
Define the headcount ratio as a measure of poverty.
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The headcount ratio measures absolute poverty as the percentage of the population living below the absolute poverty line. -
Absolute and relative poverty
Why does unemployment increase both absolute and relative poverty?
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Households lose their primary source of income, causing them to fall below both the fixed threshold for basic necessities and the relative threshold compared to median income. -
Measuring inequality: the Lorenz curve and Gini coefficient
What is the Gini coefficient?
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A numerical measure of inequality derived from the Lorenz curve, calculated as the ratio of the area between the line of equality and the Lorenz curve to the total area under the line of equality. -
Measuring inequality: the Lorenz curve and Gini coefficient
Five households have weekly incomes of £300, £400, £500, £600 and £2,200. Calculate the mean and the median income.
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Mean = (300 + 400 + 500 + 600 + 2,200) ÷ 5 = £4,000 ÷ 5 = £800; median = £500, the middle value. -
The causes of inequality, and capitalism's part in it
How does differential access to financial markets cause wealth inequality within countries?
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Unequal access to financial markets and investment opportunities means some individuals can grow their wealth more easily than others. -
The causes of inequality, and capitalism's part in it
How can deindustrialisation increase inequality?
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By reducing demand for middle-skilled manufacturing jobs, hollowing out the middle of the income distribution.
The 3 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Absolute and relative poverty | Recall questions on absolute and relative poverty and how each is measured, the headcount ratio and poverty gap, and the causes of changes in poverty, from education, transfers, taxation and wages to unemployment, inflation and globalisation. | 18 |
| Measuring inequality: the Lorenz curve and Gini coefficient | Recall questions on income against wealth inequality, the Lorenz curve and Gini coefficient, mean against median income, quintiles and deciles, the 90:10 and quintile share ratios, and drawing a Lorenz curve from quintile shares. | 21 |
| The causes of inequality, and capitalism's part in it | Recall questions on the causes of income and wealth inequality within countries, the causes of inequality between countries, how growth, deindustrialisation, globalisation and technology change it, and the part capitalism plays. | 20 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
Edexcel A-Level Economics A Active Recall Guide
Every topic, not just this one. 2,508 questions with their answers.