CAIE IGCSE Economics 5.2.2 Causes of poverty
Practise explaining why people fall into poverty through unemployment, low wages, poor health, age and low human capital.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- link unemployment to loss of income, unmet basic needs and absolute poverty
- explain how low wages, poor education or ill-health can keep households on low incomes
5.2.2—Causes of poverty question 1
[Maximum number: 6]
The Central African country Chad has a triangle-shaped population pyramid and a high level of poverty. It regularly has an overall deficit on the current account of its balance of payments. Chad usually has a surplus on its secondary income. However, its trade in goods, trade in services and primary income are all usually in deficit. Some economists suggest that the Chadian Government should impose import quotas to reduce its trade in goods deficit.
Analyse the causes of poverty.
Analyse the causes of poverty.
Coherent analysis which might include the following.
- Low quantity / quality of education (1) can reduce job opportunities (1) low skilled jobs (1) low paid jobs (1).
- Unemployment (1) lower income (1) reliant on welfare benefits (1).
- Illness / disability ( 1 ) poor healthcare ( 1 ) reduce ability to earn an income (1).
- Old age (1) may have low or no state benefits (1) absolute poverty (1).
- Uneven distribution of income / wealth ( 1 ) resulting in relative poverty (1).
- Corruption (1) reducing tax revenue available to spend on reducing poverty (1).
- Large families ( 1 ) many children ( 1 ) trapped in / child poverty (1).
- Single parent families ( 1 ) parent unable to work ( 1 ) reliant on state benefits (1).
- Poor housing ( 1 ) harms health ( 1 ) limited access to employment (1) high cost of living (1).
- Natural disaster / conflict ( 1 ) causes loss of ability to work / earn income (1).
- Geographical immobility (1) prevents access to paid jobs (1).
- Work in agriculture ( 1 ) where wages are low / not regular income (1).
- High inflation (1) cannot afford to buy basic necessities (1).
6
Answer requires more than one cause of poverty to get full marks.
Reference to absolute and relative poverty may be relevant to more than one bullet point but only reward each once.
Maximum of three causes can be given a mark.
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