Econ - Poverty

Question 1

What is Absolute poverty?

Answer 1

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

Question 2

What is Relative poverty?

Answer 2

a condition where
people are poor in
comparison to others
in the country

Question 3

Cause of poverty: u_______

Answer 3

unemployment - have to go without income for a long time, they may end up having to sell their possessions, consume less and go and into poverty.

Question 4

Cause of poverty: L__ E__ L__

Answer 4

Low Education Levels - uneducated, unskilled and unable to find better jobs, keeping them in poverty.

Question 5

Cause of poverty: S__ of F__

Answer 5

Size of Family - more family members with only a few people earning, means more costs of living, pulling the family into poverty if they’re not earning much.

Question 6

Cause of poverty: A__

Answer 6

Age - older people are likely to have more health problems and be less suitable for further employment, causing poverty.

Question 7

Cause of poverty: Poor H__

Answer 7

Poor Health - Ill mental and physical health is both a cause and result of poverty

Question 8

Cause of poverty: O____

Answer 8

Overpopulation - High population density will put pressure on scarce resource and the economy may not be able to produce and provide for everyone

Question 9

Cause of poverty: G___

Answer 9

Gender - Women usually face discrimination, especially in employment and end up being poorer than men

Question 10

Policy to alleviate poverty: Expansionary ______ policies

Answer 10

Expansionary fisca/monetary policies - increase aggregate demand and increase employment opportunities. Income and standards of living will rise.

Question 11

Policy to alleviate poverty: P___ Taxes

Answer 11

Progressive taxes - income taxes are progressive, that is, they increase as income increases. Imposing these will mean that people on higher incomes will pay a large percentage of their incomes as tax and help reduce relative poverty.

Question 12

Policy to alleviate poverty: W___ S___

Answer 12

Welfare Services - Money from taxes can be provided as income support to people with very low incomes. Also can provide free or low-cost homes, healthcare and education

Question 13

Policy to alleviate poverty: M__ wage legislation

Answer 13

Minimum wage legislation - Raise the wage of low-paid employees

Question 14

Policy to alleviate poverty: E__

Answer 14

Education - Increase quantity and quality of education

Question 15

Policy to alleviate poverty: I___

Answer 15

Attract and invite inward investments - Firms abroad to provide jobs and incomes for people

Question 16

Policy to alleviate poverty: O___ aid

Answer 16

Overseas aid - Gained from foreign governments and aid agencies: Food aid, Financial aide, loans and debt relief