Poverty

Question 1

Absolute poverty

Answer 1

Severe deprivation of basic human needs, lacking sufficient resources to sustain an acceptable living standard

Question 2

Relative poverty

Answer 2

Household income bellow 60% of median

Question 3

Effects of poverty

Answer 3

Crime
Burden on state 
Poverty cycle, lack of aspirations 
Reduced quality of human capital, lower productivity, hinders growth 
Poor health, malnutrition
Inadequate housing

Question 4

Causes of poverty

Answer 4

Unemployment, low unstable pay
Poor health
Lack of education
Growing up in poverty

Question 5

Cause of income inequality

Answer 5

Wage differentials, skill level, globalisation, trade union, type of labour market
Ability to use factors of production to produce income - health, assets link to wealth
Geographical access to education, jobs

Question 6

Causes of wealth inequality

Answer 6

Income- ability to purchase assets, save
Inheritance, generational wealth
Capital gains, having in demand assets

Question 7

Ad of inequality

Answer 7

Fairness

Promotes growth, climb ladder enterprise hard work

Question 8

Dis of inequality

Answer 8

Market failure, pushed out of effective demand
Diminishing marginal utility of money
Negative externalities eg crime
Limits growth, poor health, reduce q of human capital, more gs spending on benefits deal w neg externalities