economics unit

Question 1

relative poverty

Answer 1

income is < average in an economy

people in UK might be living in relative poverty but in other parts of the wolrd that might be a luxurious standard of living

Question 2

absolute poverty

Answer 2

income is below a certain threshold determined by a major deveopment related organisation like the world bank

world bank says = income < $2.15/day/person = absolute poverty

Question 3

why might people be in poverty

Answer 3

1. lack of job opportunities in an economy
2. lack of skills/education
3. bad luck (born into a poor household)
4. income inequality (the bigger, the greater the relative poverty)
5. unemployment (during recession for ex.)

4 = poverty cycle

Question 4

growth poverty cycle

Answer 4

low income → low levels of savings → low levels of investments → low economic growth → low income and it goes on

inv

Question 5

development poverty cycle

Answer 5

low incomes → low levels of education and healthcare → low levels of human capital → low productivity → low income and it goes on

because cant afford education and healthcare

Question 6

characteristics of ledc

Answer 6

• low access to safe drinking water
• poor vanitation + hygiene
• low education levels
• widespread absolute poverty
• corruption + poor governance
• infectious diseases prevail
• energy poverty

energy poverty = no access to energy for some people in that population

infectious diseases lower life expectancies

Question 7

ledc example

Answer 7

combodia, most sub saharan african countries like ethiopia

Question 8

medc example

Answer 8

us, uk, germany, france, australia, nz

Question 9

income

Answer 9

money earned or received by an individual or household over a specific period, usually measured on a monthly or annual basis

Question 10

wealth

Answer 10

total value of assets owned by an individual or household at a specific point in time, minus any debts or liabilities owed