What best describes relative poverty?
A 12-year-old boy has never been able to access a doctor or school.
A person earns less than the minimum defined level of income.
A person has a lower living standard than the minimum level acceptable in a society.
A person is unable to afford the basic necessities of life.
C
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.
In many high-income economies, increasing income inequality has led to greater levels of poverty.
Which combination of policies would aim to reduce income inequality?
fiscal policy
supply-side policy
decrease corporation tax
create more competition
increase income tax
reduce the power of trade unions
increase inheritance tax
increase the national minimum wage
increase sales tax
privatise more public sector firms
C