5.2

Poverty

9 flashcards to master Poverty

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Definition Flip

Define 'absolute poverty' and provide an example.

Answer Flip

Absolute poverty refers to a situation where individuals lack the basic necessities for survival, such as food, shelter, and clean water. An example would be individuals living on less than $2.15 a day, unable to afford basic caloric intake.

Definition Flip

Explain 'relative poverty' and how it differs from absolute poverty.

Answer Flip

Relative poverty refers to a situation where individuals have significantly lower living standards compared to the average income in their society. Unlike absolute poverty, it focuses on inequality rather than survival;

Example: those earning less than 60% of the median income.
Definition Flip

What is a 'poverty line' and what is its purpose?

Answer Flip

A poverty line is a minimum level of income deemed adequate in a particular country. Its purpose is to quantify poverty and track changes in poverty rates over time, informing government policies and resource allocation.

Key Concept Flip

Identify three potential causes of poverty in developing nations.

Answer Flip

Potential causes include: lack of access to education and healthcare limiting human capital, unemployment or underemployment due to a lack of job opportunities, and corruption or political instability hindering economic development and resource distribution.

Key Concept Flip

Explain how limited access to education can contribute to poverty.

Answer Flip

Limited education restricts individuals' ability to acquire skills and knowledge needed for better-paying jobs. This limits their earning potential and perpetuates a cycle of poverty, making it difficult to improve their living standards.

Key Concept Flip

Describe two policies a government could implement to reduce poverty.

Answer Flip

Governments can implement progressive tax systems to redistribute wealth, funding social safety nets like unemployment benefits and food assistance programs. Investing in education and vocational training can also improve employability and earning potential.

Key Concept Flip

How might rapid population growth exacerbate poverty?

Answer Flip

Rapid population growth can strain resources like food, water, and housing, leading to increased competition and lower per capita income. It can also put pressure on existing infrastructure and social services, making it harder to escape poverty.

Key Concept Flip

Evaluate the role of microfinance in alleviating poverty.

Answer Flip

Microfinance provides small loans to individuals and small businesses, particularly in developing countries, allowing them to start or expand their ventures and generate income. It can empower individuals, but its effectiveness depends on factors like interest rates, repayment terms, and access to markets.

Key Concept Flip

Discuss the impact of corruption on poverty levels within a country.

Answer Flip

Corruption diverts resources away from essential public services like healthcare and education, disproportionately affecting the poor. It also discourages foreign investment and hinders economic growth, further trapping people in poverty.

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5.1 Living standards 5.3 Population

Key Questions: Poverty

Define 'absolute poverty' and provide an example.

Absolute poverty refers to a situation where individuals lack the basic necessities for survival, such as food, shelter, and clean water. An example would be individuals living on less than $2.15 a day, unable to afford basic caloric intake.

Explain 'relative poverty' and how it differs from absolute poverty.

Relative poverty refers to a situation where individuals have significantly lower living standards compared to the average income in their society. Unlike absolute poverty, it focuses on inequality rather than survival;

Example: those earning less than 60% of the median income.
What is a 'poverty line' and what is its purpose?

A poverty line is a minimum level of income deemed adequate in a particular country. Its purpose is to quantify poverty and track changes in poverty rates over time, informing government policies and resource allocation.

About Poverty (5.2)

These 9 flashcards cover everything you need to know about Poverty for your Cambridge IGCSE Economics (0455) exam. Each card is designed based on the official syllabus requirements.

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