3.7.2 The problem of poverty

• Absolute poverty occurs when individuals do not have enough resources to meet basic needs
• What is used to measure poverty levels?

  Poverty lines
• What is one of the main causes of poverty?

  Unemployment
• Economic recessions can increase poverty rates due to job losses.


  True
• Match the type of poverty with its correct definition:

  Absolute poverty ↔️ Lack of resources for basic needs

  Relative poverty ↔️ Below average living standards
• What is one effect of poverty on health?

  Poor nutrition
• How does poverty affect education for individuals?

  Higher dropout rates
• What is a psychological effect of poverty on individuals?

  Depression
• What are the primary effects of poverty on health for individuals?

  Poor nutrition, lack of healthcare
• Poverty leads to higher dropout rates in education and fewer opportunities for skill development.


  True
• What are the psychological effects of poverty on individuals?

  Stress, depression, low self-esteem
• Poverty results in lower economic growth and reduced tax revenue for society.

  True
• How does the relative poverty line define poverty?

  Below a percentage of median income
• What is absolute poverty?

  Lack of resources for basic needs
• Absolute poverty is measured using a fixed poverty line
• What is an example of absolute poverty?

  Inability to afford food
• Why do low wages contribute to poverty?

  Insufficient income to meet needs
• How does poverty affect education for individuals?

  Limited access, higher dropout rates
• The absolute poverty line is a fixed threshold
• Match the type of poverty line with its definition and context:

  Absolute poverty ↔️ Minimum resources for basic needs ||| Understanding extreme deprivation

  Relative poverty ↔️ Income below median income ||| Identifying economic inequality
• Setting a legal minimum hourly wage ensures workers earn a livable income
• Steps in implementing employment policies to alleviate poverty

  1️⃣ Create job creation programs

  2️⃣ Fund skills training

  3️⃣ Enforce anti-discrimination laws
• Free or subsidized education ensures access to quality education at all levels
• What is poverty defined as in economics?

  Lack of financial resources
• Relative poverty measures whether an individual's living standards are below the average in their society.


  True
• Match the type of poverty with its definition:

  1️⃣ Absolute poverty

  2️⃣ Lack of resources for basic needs

  3️⃣ Relative poverty

  4️⃣ Living standards below the average
• Lack of access to education and healthcare can perpetuate the cycle of poverty
• In which areas is poverty often concentrated?

  Geographical regions
• Absolute poverty focuses on fundamental needs, while relative poverty considers societal living standards.


  True
• Poverty can increase strain on public health systems and lower overall population health
• Inadequate housing and unsafe living conditions are effects of poverty on living standards.

  True
• Poverty can lead to increased crime rates, social unrest, and urban decay
• Poverty leads to increased strain on public health systems
• Match the effect of poverty on living standards with its societal impact:

  Inadequate housing ↔️ Increased crime rates

  Unsafe living conditions ↔️ Social unrest

  Lack of basic amenities ↔️ Urban decay
• The absolute poverty line defines the minimum level of income needed to meet basic needs
• Steps to measure poverty using poverty lines

  1️⃣ Define poverty line (absolute or relative)

  2️⃣ Collect income data

  3️⃣ Compare income data to poverty line

  4️⃣ Identify individuals below the poverty line
• Relative poverty occurs when living standards are significantly below the average in a society.


  True
• Match the type of poverty with its relevance:

  Absolute poverty ↔️ Understanding extreme deprivation

  Relative poverty ↔️ Identifying economic inequality
• Unemployment is a primary cause of poverty due to a lack of stable, well-paying jobs
• Lack of access to education and healthcare can perpetuate the cycle of poverty.


  True