0455/22/M/J/24 

In 2020, wages paid to Mexican workers, including those in the primary sector, fell. This fall contributed to a 9% rise in poverty in the country. In the same year, many small and medium-sized firms closed down. The country also suffered from traffic congestion. Its capital, Mexico City, is the world’s most congested city.

• Explain two policy measures which may reduce poverty. [4]

• Analyse how the closure of firms may harm consumers. [6] 

0455/21/M/J/23

Living standards, including education, have improved for most people in South Africa in recent years. Most households have more money and the government has more tax revenue. There is, however, considerable income inequality. In 2020, 36% of the population were living in poverty. An increase in unemployment benefit payments might reduce this poverty.

Discuss whether or not an increase in unemployment benefit payments would reduce poverty. [8]

0455/23/O/N/22 

Poland is the world’s top exporter of toothpaste, a product that is in inelastic demand. In 2019, some Polish firms producing toothpaste considered a horizontal merger. Also in 2019, the wages of dentists increased globally. This increase was particularly high in the UK where dentists received, on average, a 25% wage rise. 

• Discuss whether or not a decrease in a country’s unemployment rate will reduce poverty. [8] 

0455/22/O/N/22 

In 2019, Russia had an unemployment rate of 4.6%. Russia experienced full employment in the past. Its government wants unemployment to be lower. In 2018, the Russian government cut its spending which may have increased poverty. In both 2018 and 2019, the government did not change its income tax rate. Russia operates a proportional tax rate system. 

• Analyse why a cut in government spending might increase poverty. [6] 

0455/21/M/J/21 

In 2018, the US had its lowest unemployment rate for 18 years. Cyclical unemployment was very low and so was the rate of inflation. The US also experienced a rise in labour productivity. However, it did not do so well in reducing poverty. In 2018, approximately 12% of Americans were living in poverty .

• Discuss whether or not a fall in a country’s unemployment rate will reduce poverty in that country. [8] 

0455/23/O/N/20 

Changes in tobacco production and consumption can have both microeconomic and macroeconomic effects. Tobacco plants are grown in at least 124 countries with different levels of development. A higher proportion of the poor than of the rich consume tobacco products. The market for cigarettes, produced using tobacco, is changing. Demand for cigarettes and some other demerit goods is declining in a number of countries. 

• Analyse how a cut in the interest rate could reduce poverty. [6] 

0455/21/O/N/20 

Free trade has allowed the Mexican economy to specialise in low-cost manufacturing. Unemployment nationally is relatively low, but approximately 50 million people were still considered to be in poverty in 2016. In addition, there are worries that technological advances will soon replace labour with capital. 

• Explain the two types of poverty. [4] 

0455/22/M/J/20 

Mali is a low income and low productivity country in Africa. Its government is using fiscal policy to reduce poverty. The country’s main industries are agriculture and gold mining. In recent years, however, there have been some changes in its resource allocation. The country is developing its iron ore industry. Globally, the iron ore industry is one which has experienced a significant number of mergers in recent years. 

• Explain two fiscal policy measures that can be used to reduce poverty. [4] 

0455/22/F/M/22 

New Zealand is a small country with a population of 5 million. Most New Zealand firms are relatively small and most do not experience diseconomies of scale. In 1894, New Zealand was the first country to introduce a national minimum wage. New Zealand experienced a rise in income per head every year between 2010 and 2019. During this period, 6% of New Zealand’s households experienced absolute poverty. 

• Analyse why children from low-income families may have low incomes as adults. [6] 

• Discuss whether or not the introduction of a national minimum wage will reduce poverty. [8] 

0455/21/M/J/20 

Japan has a low immigration rate and a declining population. In recent years, it has experienced deflation and a rise in child poverty. By 2017, one in six Japanese children lived in a household with less than half of the average household income. Japan operates a national minimum wage which increased every year between 2010 and 2017. This may have affected the level of poverty in the country. 

• Discuss whether or not a national minimum wage will reduce poverty. [8] 

0455/22/F/M/19 

Average life expectancy is as short for the poorest Americans as it is for the people of Sudan, a low-income African country. Low-income individuals tend to live longest in countries with more educated populations. Economic growth can increase education and reduce poverty. In 2017, the US President announced a cut in the tax on firms’ profits. He said the measure would increase employment. 

• Analyse how economic growth can reduce absolute poverty. [6] 

0455/21/O/N/18 

The Malaysian government implemented the Vision 2020 policy which aims to make Malaysia a developed country by the year 2020. Along with this vision, the National Privatisation Policy was also implemented whereby various firms, such as those involved in telecommunications, were privatised. Poverty has significantly reduced since the implementation of these policy measures. 

• Identify the difference between absolute poverty and relative poverty. [2] 

• Analyse two policy measures to alleviate poverty. [6] 

0455/23/M/J/18 

The state of California has the most progressive tax system in the USA. The tax system helps reduce high poverty rates. Policy makers are considering reforming sales tax in the state to include services, while reducing the use of direct taxes. 

• Explain two reasons why a government may want to reduce poverty. [4] 

0455/22/F/M/18 

The effects of a depreciation of a currency are influenced by the price elasticity of demand of exports and imports. Worldwide there has been a reduction in trade barriers including tariffs. There has also been an increase in the movement of goods and services between countries and, to a lesser extent, the movement of people. Some countries experience net emigration with more people leaving the country than entering it. 

• Discuss whether or not net emigration will reduce poverty in a country. [8]