Chapter 33 Poverty

Question 1

Define absolute poverty

Answer 1

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

Question 2

Define 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

Causes of poverty (3)

Answer 3

unemployment -People who are unemployed live off on unemployment benefits and therefore receive very little income.

low wages -People on low wages spend most of their income on essential goods

illness and age - Poor health à Low productivity à Firm may reduce worker income or fire them

Question 4

Define the vicious circle of poverty

Answer 4

situation where people become trapped in poverty

Question 5

Possible government policy measures to reduce policy (4)

Answer 5

Improvements in quantity and quality1 of education -

Promoting economic growth -

Introducing minimum wages -

Land reforms -