poverty

Question 1

define Absolute poverty

Answer 1

the inability to afford basic necessities needed to live.
This is measured by the number of people living below a certain income threshold

Question 2

Causes of poverty
(8)

Answer 2

1. Unemployment
2. Low education levels
3. The size of family
4. Age
5. Poor government support
6. Poor health
7. Overpopulation
8. Gender

Question 3

define Multidimensional
Poverty Index (MPI)

mention the weighting as well

Answer 3

a measure of poverty based on deprivations in education, health
and standard of living

Health-1/6
Education-1/6
standard of living-1/8

Question 3

Policies to alleviate poverty(6)

Answer 3

1. Introduce measures to reduce unemployment
2. Impose progressive taxes
3. welfare services
4. minimum wage legislation
5. Increase the quantity and quality of education.
6. Attract and invite inward investments

Question 4

define Vicious circle of
poverty

Answer 4

a situation
where people become
trapped in poverty

Question 5

define Relative poverty

Answer 5

the condition of having fewer resources than others in the same society.
Relative poverty is basically a measurement of income inequality since a high relative poverty should indicate a higher income inequality.

Question 6

Measures to raise living standards (6)

Answer 6

• Improving education and training will enhance the knowledge and earning potential of the people
• ability to participate in the political system of the country.
• Reducing unemployment, also raises living standards by increasing the quantity of available goods and
  services
• improving healthcare,
• improving the housing stock
• improving the working conditions
• reducing pollution.

Question 7

Government policies on the distribution of income and wealth

Answer 7

• taxation
• the provision of cash benefits
• the provision of free state education and healthcare, and
• using labour and macroeconomic policies.

Question 8

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

Answer 8

• Economic growth is likely to increase employment (1) this may increase the chances of the poor gaining jobs (1) raise income (1) allow them to buy
  basic necessities / definition of absolute poverty (1).
• Economic growth can increase tax revenue (1) this may enable the government to spend more to help the poor (1) e.g. improved education for the poor (1) higher state benefits (1).

Question 9

Analyse how long-term unemployment can cause relative poverty. (6)

Answer 9

• Relative poverty is when household income is low compared to the average (median)
• income in that country, e.g. less than 60% of average income (1)
• Long-term unemployed have very low incomes (1) cannot afford items which average households are able to (1) e.g. adequate housing, healthcare (1) may depend on government benefits (1) may be unable to provide children with good education (1) children may not be able to take up good jobs (1) productivity may be lower (1) compared to those who are **better educated **(1).
• Savings will be used up (1) reducing the ability to escape poverty (1)
• Health deteriorates (1) reducing the ability to find work (1) depression may occur (1)
• reducing the motivation to find work (1)