Poverty

Question 1

What is absolute poverty (3+)

Answer 1

A person cannot afford basic goods
Living below the subsistence level
World Bank uses a measurement based on the number of people living on less than $1.25 per day

Question 2

What is relative poverty (3+)

Answer 2

Below the median level of income
UK = those with below 60% of the median income = 11 million
Relative poverty can be seen as one way of measuring income inequality

Question 3

Causes of poverty - inequality in wages or unemployment (4)

Answer 3

Education level = 60% in UK don’t have GCSE
No national minimum wage level
Part time and temporary jobs increases (zero hour contract)
Deindustrialisation = structural + occupational unemployment + hysteresis

Question 4

Example in UK of deindustrialisation (2)

Answer 4

Tata Steel in Scunthorpe
3000+ unemployed = negative multiplier effect

Question 5

What is fat cat Wednesday (2)

Answer 5

3rd January 2024
Day that too UK CEOs earned the avg. UK workers yearly salary

Question 6

Causes of poverty - welfare payments (3)

Answer 6

State pensions and welfare payments tend to increase less than wages
This means that those on benefits see a smaller real increase in their income compared to those in jobs
Increases inequality + number of people in relative poverty

Question 7

Causes of poverty - taxes (2)

Answer 7

(Some) regressive = worse of the lover your income is = VAT
Increase wages will just push people into the higher tax band = worse off

Question 8

Causes of poverty - disease, malnutrition etc (3)

Answer 8

Health issues = hard to get a job
People are likely to take a lot of time off work = deter MNCs from investing in a country
Can leave people without an income and it can push people into absolute poverty

Question 9

Example of disease etc (3)

Answer 9

Cameroon = introduced a new vaccine for malaria = improve health of pop.
COVID / long covid = prevents working
Mental health = increased problem in last 5 years

Question 10

Causes of poverty - war + conflict (3)

Answer 10

Might push people to flee their homes + destroying anything they owned
Could leave people homeless and force them into extreme poverty
War in Ukraine = exmaple

Question 11

Causes of poverty - natural disaster

Answer 11

Destroy peoples livelihoods - earthquakes + floods

Question 12

Causes of poverty - political oppression + corruption (2)

Answer 12

Countries with corrupt leaders might have higher levels of poverty
There is likely to be relative poverty since the leaders might keep most of the wealth