CAIE IGCSE Economics 5.2.1 Definitions of absolute & relative poverty
Practise separating absolute and relative poverty using income thresholds, basic needs, living standards and recession scenarios.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- distinguish inability to afford basic needs from living below society's accepted standard
- interpret scenarios where recession, pensions or benefits change absolute or relative poverty
5.2.1—Definitions of absolute and relative poverty question 1
[Maximum number: 4]
Free trade has allowed the Mexican economy to specialise in low-cost manufacturing. Unemployment nationally is relatively low, but approximately 50 million people were still considered to be in poverty in 2016. In addition, there are worries that technological advances will soon replace labour with capital.
Explain the two types of poverty.
Explain the two types of poverty.
Logical explanation which might include: Absolute poverty (1) is when someone cannot afford the basic necessities of life (1) less than $1.90 per day at PPP (1).
Relative poverty (1) is when someone earns less than is needed to participate in the normal activities of society (1) when there is inequality (1).
4
One mark for identifying absolute poverty and one mark for an explanation.
One mark for identifying relative poverty and one mark for an explanation.
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