CAIE IGCSE Economics 5.2.2 Causes of Poverty Questions

Practise Cambridge IGCSE Economics by explaining poverty causes, analysing absolute and relative poverty and tracing the poverty cycle from low income to limited opportunity.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Explain how unemployment, low wages, weak investment, poor health or education can cause poverty.
  • Analyse relative and absolute poverty using income distribution, policy and country context.
  • Explain the poverty cycle, linking low income, low consumption, low investment and limited future earning opportunities.

CAIE IGCSE Economics 5.2.2 Causes of Poverty Questions 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.

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