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Question 20N.1.SL.TZ0.a

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Date November 2020 Marks available [Maximum mark: 10] Reference code 20N.1.SL.TZ0.a
Level SL Paper 1 Time zone TZ0
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
20N.1.SL.TZ0.a

Explain how government expenditures are used to promote equity in the distribution of income.

[10]

Markscheme

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.

Answers may include:

  • definitions of government expenditure, equity, distribution of income
  • diagram to show two Lorenz curves showing different degrees of inequality
  • explanation that governments can provide or subsidize merit goods such as education and health care to benefit those on low incomes and also increase transfer payments
  • examples of government expenditure measures to promote equity.
Examiners report

There were some good answers to this question with many candidates showing a clear understanding of equity in terms of opportunity and fairness and explaining how government spending on welfare payments, education and healthcare can improve equity. Many students used the Lorenz curve diagram and Gini coefficient to illustrate how equity could be improved by reducing income inequality. 

Syllabus sections