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This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

Some current wealth and income statistics:

• In 2025, the world’s 3,028 billionaires have a combined wealth of $16.1tn. This is a similar value to the world’s second-largest economy, China

• The richest 1 per cent of the world’s population accounts for 43 per cent of the value of all global financial assets

• The bottom 50 per cent of the world’s population owns just 2 per cent of the value of all global financial assets

• If Elon Musk achieved an asset value of $1tn, it would make his wealth the equivalent of the 20th largest economy in the world (above Belgium, Taiwan and Argentina)

• The US Gini coefficient has increased from 0.43 in 1990 to 0.49 in 2024

Read the article and then answer the questions:

Elon Musk celebrates $1tn Tesla pay vote victory

• Outline the difference between Elon Musk’s income and wealth [2]

• Outline what Elon Musk has to achieve in terms of the value of Tesla to receive his $1tn income payment [2]

• Using a diagram, explain the Lorenz curve [4]

• Explain how the Gini coefficient can be used to measure income inequality [4]

• Outline what an increase in the US’ Gini coefficient from 0.43 in 1990 to 0.49 in 2024 shows [2]

• Explain two factors that might lead to an increase in income inequality in the US [4]

• Explain two negative consequences of increasing income inequality in the US [4]

• Explain two benefits of paying someone like Elon Musk, such as a large income [4]

Alex Smith, Sevenoaks School, InThinking/thinkIB