7.2 The Problem Of Poverty

Question 1

What is poverty?

Answer 1

State of being extremely poor and not having enough money or income to meet basic needs

Question 2

What is poverty caused by?

Answer 2

Low national incomes
Inequality

Question 3

What is relative poverty?

Answer 3

When an income is below 60% of average income

Question 4

What is absolute poverty?

Answer 4

A condition characterised by severe deprivation of basic needs, food, safe drinking water, sanitation, shelter education (depends on income but also access to services)

Question 5

What are the 3 causes of poverty in the UK?

Answer 5

-old age
-unemployment
-low wages

Question 6

How is old age a cause or relative poverty?

Answer 6

Reliance on state pension and lack of pension

State pensions changed from changes in real earnings to inflation

-old people reliant completely on the state are becoming increasingly worse off in comparison to older people

Question 7

How does unemployment cause poverty?

Answer 7

Unemployment benefits lower than pay of working, increase in unemployment therefore causes an increase in poverty, Government more in favour to make changes to state pension instead of unemployment because of political reasons

Question 8

How does low wages cause poverty?

Answer 8

Many unskilled workers and are relatively poor as a result

NMW is an attempt to reduce poverty of the low wage

Question 9

What are the three effects of poverty in the UK?

Answer 9

Educational deprivation
Health deprivation
Effect on communities

Question 10

How does poverty cause educational deprivation?

Answer 10

Children from poorer backgrounds lag in all stages of education

By the age of 3 poor kids 9 months behind rich kids

Children receiving free school meals receive 1.7 grades lower on GCSEs

Question 11

How does poverty cause health deprivation?

Answer 11

Higher risk or illness and death due to poor nutrition, disabilities and dealing with Cronin expensive illnesses

Question 12

What is the effect of poverty on communities

Answer 12

Children living in poverty 2x more likely to live in bad housing

Fuel poverty means family have to choose between food and heating and can’t go on holidays away from home

Question 13

What are bed-blockers

Answer 13

Old people remaining in hospital after they have been treated because there is no where els to go

Question 14

What is ppp

Answer 14

The rate at which the currency of one country would be in another county

Question 15

What is the issues associated with absolute poverty by(5 asp)

Answer 15

-lack of education
-depleted environment
-corruption and conflict
-poor health and nutrition
-poor gov

Question 16

How is relative poverty defined in the UK?

Answer 16

Below 60% of median income

Question 17

What is persistent poverty?

Answer 17

Being in relative income poverty both in current year and at least 2 of the 3 preceding years

Question 18

What are the main causes of absolute poverty?(7 asp)

Answer 18

-effects of corruption in gov and businesses
-low employment rates
-absence of basic property rights
-damaging effects of civil wars and natural disasters
-high debt and interest rate levels
-absence of basic government/ public services
-population growing faster than GDP in low income countries

Question 19

What is the gig economy?

Answer 19

Where people work on 0 hour contracts

Question 20

What are the causes of relative poverty(notes)(5 asp)

Answer 20

-unemployment
-inheritance
-lack of human capital
-lack of financial capital
-changing nature of society

Question 21

How is unemployment a cause of relative poverty?

Answer 21

-benefits may be below society’s median income
-mental and physical illness affect ability to work and earn money
-changing pattern of demand of labour

Question 22

How is lack of human capital a cause of poverty?

Answer 22

Unskilled workers can only sell their labour to services for low wages

Question 23

How does a lack of financial capital cause relative poverty?

Answer 23

An ageing population and fuel poverty

Question 24

How is the changing nature of society a cause of relative poverty?

Answer 24

Divorce rates/single parent homes and child poverty