Poverty

Question 1

2 types of poverty

Answer 1

Absolute and relative poverty

Question 2

What is absolute poverty

Answer 2

Being unable to afford the most basic needs such as food, clean water and shelter
In 2013 it was estimated that around 767 million people were living in absolute poverty
Poverty line set to less than $2.15 a day in 2022

Question 3

What is relative poverty

Answer 3

When you are earning less than a particular percentage of a country’s average income
E.g less than 60% of average income in the uk

Question 4

What are the most important factors influencing poverty rates

Answer 4

Infrastructure
Education and Training
Aid

Question 5

Better infrastructure increases…

Answer 5

Productivity which increases income which decreases absolute poverty

E.g South Korea invested in bridges leading to transportation costs to decrease allowing farmers to transport sell their goods.
Leads to LRAS OR/AND Aggregate demand to increase

Question 6

In 2011 Somalia received

Answer 6

$1.3Billion in aid but 70% went to corrupt politicians instead, limiting growth and development