A
What describes absolute and relative poverty?
Absolute poverty is when...
Relative poverty is when...
Absolute: not enough money for food, shelter, clothes.
Relative: earns less than others in the same society
State one cause of poverty.
unemployment
True or False: Relative poverty can exist in a wealthy country.
True.
Which factor is most likely to cause relative poverty in a developed country?
A. A widespread famine.
B. Long-term unemployment.
C. A lack of clean water.
D. An outbreak of a dangerous disease
b
How can state benefits reduce poverty?
They provide people with a basic income to buy essential items.
What is a minimum wage?
A legal lowest amount that can be paid to a worker for an hour of work.
What is one problem with the poverty cycle?
It is difficult for people to escape from it without help.
What is the purpose of progressive taxation?
To redistribute wealth and reduce income inequality.
Which of the following is a characteristic of the poverty cycle (or poverty trap)?
A. High levels of savings in the economy.
B. Low taxes and high government spending.
C. Low wages leading to low savings and investment.
D. A high demand for luxury goods.
c
What role does limited education play in the poverty cycle?
Limited access to education contributes to the poverty cycle by limiting skills and employment opportunities.
How can a national minimum wage reduce poverty?
It raises the income of the lowest-paid workers.
Define 'redistribution of income'.
The transfer of income from some individuals to others, typically through progressive taxation and government spending, to reduce inequality.
What best describes the poverty cycle?
The self-reinforcing pattern where poverty is passed down through generations
Explain two reasons why a government may want to reduce poverty
1. To reduce social problems and create a more stable society.
2. To improve productivity and economic growth by ensuring a healthier, more skilled workforce.
Discuss whether or not a fall in a country’s unemployment rate will reduce poverty.
Yes: More people earning incomes reduces the number of households with no wages, lifting some out of poverty.
No: Does not help if new jobs are very low-paid, part-time, or if the "working poor" are not earning enough to escape poverty.
Explain two causes of poverty amongst fishermen
1. Low wages: High supply of workers, low demand for services.
2. Unemployment: Structural (industry decline) or seasonal (weather/fishing restrictions).
Explain two reasons why a government may want to reduce poverty
1. To reduce social problems and create a more stable society.
2. To improve productivity and economic growth by ensuring a healthier, more skilled workforce.
Explain two policy measures which may reduce poverty.
1. Promoting economic growth: Creates jobs and improves wages.
2. Progressive taxation: Taxes the rich at higher rates to fund social programs for the poor.
3. Improving education: Provides skills for better employment.
4. National minimum wage: Ensures workers earn a living wage
Discuss whether or not a national minimum wage will reduce poverty
Yes: Raises incomes for the lowest-paid workers, reduces inequality, and can increase motivation.
No: Could lead to unemployment if firms cannot afford the wage, may increase costs for businesses, and does not help those who are unemployed.
congrats
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(if you are Samer you get -500 point)