Poverty

Question 1

2 sources of poverty

Answer 1

relative poverty

absolute poverty

Question 2

define relative poverty

Answer 2

when income is below a specific proportion of average income

Question 3

define absolute poverty

Answer 3

when income is insufficient to satisfy basic needs such as food, water, shelter, health and education.

Question 4

4 causes of poverty

Answer 4

1. age
2. unemployment
3. low wages
4. lack of incentives

Question 5

How is age a cause of poverty

Answer 5

those living on state pension can become relatively worse off over time if wages in the country rise faster than their pension.

Question 6

how is unemployment a cause of poverty

Answer 6

if benefits don’t keep up with the increase in average income or prices.

Question 7

How is low wages a cause of poverty

Answer 7

some people are poor because they are low paid because they are lacking education and training forcing the low paid to take up an even lower paid job.

Question 8

How is lack of incentives a cause of poverty

Answer 8

this is a situation where people on low incomes become stuck in relative poverty because when they decide to work more they lose some of their means-tested benefits and pay more income tax.