4 questions on Government Policies to Alleviate Poverty and to Influence the Distribution of Income and Wealth (AQA specification 1.7.3) from the A-Level Economics papers, 2017–2023. Every question links to the official mark scheme at the page its answer begins on.
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Extract E (lines 19–20) states that ‘Some out-of-work benefits have not kept up with inflation, putting downward pressure on wages, contributing to the rise in in-work poverty.’ With the help of a diagram, explain how a reduction in out-of-work benefits may lead to lower wages in some labour markets.
Evaluate whether the best way to reduce inequality in disposable income is to reduce differences in pre-tax incomes rather than through taxes and welfare benefits.
Evaluate the view that government intervention to reduce inequality will lead to an improvement in economic welfare.
To what extent can the problem of poverty in the UK be solved through the operation of market forces? Justify your answer.
1.7.2 The Problem of Poverty · 1.7.3 Policies on Poverty and Inequality
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