Unit 3: Macroeconomics

Topic 3.4: Economics of Inequality and Poverty Questions

Practice 20 exam-style questions for IB Economics Topic 3.4. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.

11 mark
The Lorenz curve is used to:
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21 mark
Transfer payments are a tool for reducing inequality because they:
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31 mark
Transfer payments are a tool for reducing inequality because they:
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41 mark
The Lorenz curve is used to:
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51 mark
Minimum wage legislation aims to reduce poverty by:
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61 mark
The Gini coefficient is a measure of:
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71 mark
Progressive taxation helps reduce income inequality because:
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81 mark
Minimum wage legislation aims to reduce poverty by:
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91 mark
The Gini coefficient is a measure of:
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101 mark
Progressive taxation helps reduce income inequality because:
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114 marks
Distinguish between absolute poverty and relative poverty.
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121 mark
A potential consequence of high income inequality in a society is:
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131 mark
The difference between absolute poverty and relative poverty is that:
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144 marks
Explain two policies a government could use to reduce income inequality.
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151 mark
The difference between absolute poverty and relative poverty is that:
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161 mark
A country's Gini coefficient decreases from 0.55 to 0.40. This indicates that:
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171 mark
A country's Gini coefficient decreases from 0.55 to 0.40. This indicates that:
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184 marks
Explain why poverty can persist even when an economy experiences economic growth.
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194 marks
Explain how the Lorenz curve and Gini coefficient measure income inequality.
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204 marks
Explain two economic consequences of poverty.
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