Chapter 33- Poverty

Question 1

Absolute Poverty

Answer 1

A condition where people’s income is too low to enable them to meet their basic needs

Question 2

Relative Poverty

Answer 2

A condition where people are poor in comparison to others in the country. Their income is too low to enable them to enjoy the average standard of living in their country.

Question 3

Vicious Cycle of Poverty

Answer 3

A situation where people become trapped in poverty

Question 4

Causes of Poverty

Answer 4

unemployment, low-paid work, falling ill, growing old. Once in poverty, people can get trapped in the vicious cycle of poverty. They are likely to have worse than average education and healthcare which will reduce employment opportunities and income hence affecting the prospects of their children.

Question 5

Possible Government Policy Measures to Reduce Poverty

Answer 5

Improve the quality and quantity of education
Promoting economic growth
Introducing or raising minimum wage
Encouraging more multinational companies to set up in the country
Providing benefits or more generous state benefits
Land reform

Question 6

Measures to raise Living Standards

Answer 6

Improving education and training will enhance knowledge and earning potential of the people also increasing their political participation
Reducing unemployment
Improving healthcare, increasing and improving housing stock, improving working conditions and reducing pollution

Question 7

Government Policies on Distribution of Income and Wealth

Answer 7

taxation
provision of cash benefits
the provision of free state education and healthcare
using labor and macroeconomic policies