Micro 7.2

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When does relative poverty exist?
When some people in society are worse off than others.
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What is relative poverty often defined as?
Earning less than 60% of a country’s median income.
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When does absolute poverty exist?
When some people can’t afford the basic necessities to sustain life.
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What are 5 causes of poverty?
Relatively low wages, unemployment, regressive taxation, old age, imperfect information.
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How do relatively low wages cause poverty?
Workers with relatively low skills, with few, if any relevant qualifications, will find themselves either in low paid jobs or unable to secure work.
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How does unemployment cause poverty?
Individuals who are reliant on unemployment benefits tend to have incomes significantly lower than those in work.
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How does regressive taxation cause poverty?
Increases in the numbers and rates of regressive taxes have placed a higher burden on the poorest members of society.
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How does old age cause poverty?
Welfare benefits and the state pension are still the major sources of income for older members of society.
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How does imperfect information cause poverty?
Some people are unaware of their eligibility to claim certain welfare benefits.
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What are 3 effects of poverty?
Greater demands of the welfare system, poor educational attainment, poor health.
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How does poverty cause greater demands on the welfare system?
People in poverty are more likely to be eligible to claim welfare benefits and not earn incomes high enough to pay income tax, so will impose a greater cost on the government than those on higher incomes.
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How does poverty cause poor educational attainment?
People from poorer backgrounds tend to perform less well at all levels of education, meaning that they are less likely to go on to further and higher education.
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How does not going on to higher education affect people?
They will have a lower MRP than those with higher levels of attainment, meaning they tend to earn relatively low wages.
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How does poverty cause poor health?
Those in poverty are likely to suffer from poor health, which is likely to hamper the ability to maintain employment, putting a further strain on the nation's resources.
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Why is it difficult for the government to implement effective policies to alleviate poverty?
Some groups in society may be unable to break free from deprivation.
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Other cards in this set

Card 2

Front

What is relative poverty often defined as?

Back

Earning less than 60% of a country’s median income.

Card 3

Front

When does absolute poverty exist?

Back

Preview of the front of card 3

Card 4

Front

What are 5 causes of poverty?

Back

Preview of the front of card 4

Card 5

Front

How do relatively low wages cause poverty?

Back

Preview of the front of card 5
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