Tuesday 11 June 2013 Morning

Transcription

1 Tuesdy 11 June 2013 Morng A2 GCE ECONOMICS F583/01 Ecomics of Work nd Leisure *F * Cndidtes nswer Questi Pper OCR supplied mterils: Ne Or mterils required: Clcultors my be used Durti: 2 hours * F * INSTRUCTIONS TO CANDIDATES Write your nme centre number nd cndidte number boxes bove Plese write clerly nd cpitl letters Use blck k HB pencil my be used for grphs nd digrms ly Red ech questi crefully Mke sure you know wht you hve to do before strtg your nswer Write your nswer to ech questi spce provided If dditil spce is required you should use led pges t end of this booklet The questi number(s) must be clerly shown Answer Secti A nd e questi from Secti B Do not write br codes INFORMATION FOR CANDIDATES The number of mrks is given brckets [ ] t end of ech questi or prt questi The totl number of mrks for this pper is 60 The qulity of your written communicti will be tken to ccount mrkg of your nswer to Secti B This document csists of 20 pges Any blnk pges re dicted A clcultor my be used for this pper [T/500/7918] DC (SJF) 58281/5 OCR is n exempt Chrity Turn over

2 2 Inequlity distributi of necessry evil? A more equl distributi of with country is usully seen s desirble ecomic objective nd ntil governments refore use vriety of methods to try to chieve more equl distributi of However ecomists disgree over method would be most effective chievg this objective A method of mesurg degree of equlity of n ecomy is to use numericl mesure produces number between 0 nd 1 The closer number is to 0 more equl distributi of is tht ecomy The chnge equlity UK between 1980 nd 2010 is shown Fig 1 5 Yer Numericl mesure of equlity Fig 1 Numericl mesure of equlity for UK There re mny different cuses of equlity with n ecomy nd some ecomists rgue tht differentils ply vitl prt fluencg centive to work nd to work hrder with n ecomy 10 Low-pid jobs nd -pid regis Reserch to -pyg occuptis shows tht gretest numbers of mimum wge jobs re hospitlity such s brs resturnts nd hotels (245000) nd retil (231000) toger ccount for round 44 per cent of ll mimum wge jobs In dditi between 20 per cent nd 30 per cent of workers employed hirdressg cleng nd hospitlity re pid mimum wge This compres with ly 7 per cent of people employed socil cre Just s pid jobs re distributed unevenly cross sectors mimum wge jobs re spred unevenly throughout UK Norrn Irelnd is prt of UK with highest proporti of mimum wge jobs (67 per cent) foled by Wles (52 per cent) nd Englnd (41 per cent) while Scotlnd hs est (38 per cent) Lookg t regis with Englnd North Est hs highest (58 per cent) while Ld hs est percentge (23 per cent) of mimum wge jobs 15 20

3 1990 So SECTION A Answer ll prts of questi this secti 1 () (i) Wht is ment by equlity distributi of? Where totl of n is unevenly ecomy distributed where smller proporti of populti hs thn lrger equl proporti porti of equlity exists when 20% of populti thn owns more 20% of [2] (ii) Usg Fig 1 describe chnges equlity UK between 1980 nd 2010 Income equlity hs cresed rte of crese equlity hs Sed down seen by smller rise from thn lrger rise from of 007 [2] Turn over

4 Also So This In 4 (b) Comment extent to py is m cuse of equlity Low py cn be m cuse of equlity s wges re often m source of for household if One worker receives higher thn higher proporti wge of totl somee else n y hve cretg equlity people re often unskilled MRP py if little trg is offered n re is no progress out of equlity so problem persists On or hnd people or might receive py from government form of benefits might be correctg equlity Anor form of is welth if people hve more welth nd hve n from it n hve y higher furrmore higher erners will more likely welth own more refore furr deepeng equlity Some people might lso be entirely dependent stte trnsfers cn be er thn thus stte hs cused equlity cclusi wges py py is cuse of equlity s higher erners own more welth wge nd furr crese equlity [5] sources of

5 They (c) Stte nd expl two possible methods of reducg regil equlity 5 1 Different txti different so regis where re regis is levels hve y er tx rtes nd higher res txed re more The government will n use more of tx revenue res 2 Different regl mimum wges cresg mimum wge py res so ir creses hence reducg equlity regi [4] (d) Stte nd expl two ress why jobs such s hirdressg cleng nd hospitlity hve high percentge of mimum wge workers 1 Low skilled work hvg er MRP determed by level of humn cpitl will ern er wge 2 High elstic supply time period for trg will ern wge s demnd will be elstic too so chnges demnd will hve ny little effect sensitive or to wges wge s supply is [4] very respsive Turn over

6 6 (e) Discuss effectiveness of progressive txti reducg equlity UK proporti A progressive tx system such s tx will crese mount will ffect higher erners tx s creses This of more higher percentge of ir thn txed This y re reduces erners s equlity s more er nd hve higher higher erners erners wge wge hve stte trnsfers will reduce equlity y receive cn s to educti tx revenues furrmore used nd cn trg crese gp be will humn cpitl y crese lg so for run erners will furr reduce equlity Incresg higher ern pyments wge subsidies will to expnd producti revenues usg tx give firms funds subsidies work such short run nd s s crese employment lbour However this depends dustry reltively more flexible thn cpitl s is tht is subsidised t ir PPC so re nd if y opertg more will be less productive for firm employment stnces Progressive txti equlity might not correct of lck of This countries where luck of re is be seen developg cn it of significnt impct Txg will not hve distributi hve people might hurt s for fncg busesses redistributi less how with government It is lso dependent mngg spendg tx It cn be used directly form of benefits to crese revenue tickle used to through effect for or be vestment down frstructure government cn In cclusi progressive txti cn reduce equlities s to distribute tx er equlity but this dependent eqully :S revenue collected how tx is distributed nd If re is government filure If tx rtes correct tx rtes set unfir distributi of tx nd too txes void high county or re people might eir n leve thus not correct equlity [8] government will reduce tx revenue cn