Poverty (Cambridge (CIE) IGCSE Economics)

Exam Questions

1 hour30 questions
11 mark

A low-income country experiences extreme poverty in its rural areas. 

What is a possible cause of this?

  • development of better irrigation techniques

  • distribution of international food aid

  • high trade barriers imposed by high-income countries

  • higher prices for agricultural produce

Did this page help you?

21 mark

Developing countries are sometimes given aid by charities and foreign governments.

Which aid programme would be least likely to lead to long-term economic growth?

  • the building of an irrigation system

  • the construction of a new airport

  • the distribution of gifts of food

  • the training of technical staff

Did this page help you?

31 mark

Which change is most likely to be expected when an economy is developing?

  • birth rates increase rapidly

  • poverty rates fall

  • unemployment levels rise

  • the primary sector overtakes the secondary sector

Did this page help you?

41 mark

What describes absolute and relative poverty?

 

absolute poverty

relative poverty

A

when there are low birth rates, high death rates, and high levels of migration

when there are high birth rates, low death rates, and low levels of migration

B

when a person does not have enough money for food, shelter, and clothes

when a person earns less than others in the same society

C

when everyone has an income below US$1.90 a day

when half the population has an income of US$1.90 a day

D

when necessities cannot be afforded

when luxuries cannot be afforded

    Did this page help you?

    5
    Sme Calculator
    1 mark

    Which of the following best describes the poverty cycle?

    • A short-term rise in poverty caused by natural disasters

    • The increase in poverty due to overpopulation

    • The self-reinforcing pattern where poverty is passed down through generations

    • A decrease in poverty during periods of economic growth.

    Did this page help you?

    11 mark

    In countries with absolute poverty, low incomes can start a process that keeps incomes low.

    What are the stages of this process?

    • low incomes rightwards arrowlow consumption rightwards arrow low prices rightwards arrow low output rightwards arrow low incomes

    • low incomes rightwards arrowlow government spending rightwards arrowhigh taxation rightwards arrowlow employment rightwards arrowlow incomes

    • low incomes rightwards arrow low investment rightwards arrow high profits rightwards arrowlow dividends rightwards arrowlow incomes

    • low incomes rightwards arrow low saving rightwards arrow low investment rightwards arrowlow productivity rightwards arrowlow incomes

    Did this page help you?

    21 mark

    The table shows the percentage share of GDP held by the richest 20% and poorest 20% of the population in each country.

    Which country had the greatest extremes of income and poverty?

     

    country

    richest 20%

    poorest 20%

    A

    B

    C

    D

    Ghana

    Nigeria

    Senegal

    South Africa

    41.7%

    55.7%

    48.2%

    64.8%

    8.4%

    4.4%

    6.4%

    2.9%

      Did this page help you?

      31 mark

      Which characteristic will show that a country has significant absolute poverty?

      • A majority of the population will have less than average income.

      • Basic living needs are not being met.

      • Most people do not have mobile phones.

      • There is a high number of people living in rural areas.

      Did this page help you?

      4
      Sme Calculator
      1 mark

      What role does limited access to education play in the poverty cycle?

      • Limited access to education is not a factor in the poverty cycle

      • Limited access to education can help break the poverty cycle

      • Limited access to education has no impact on the poverty cycle

      • Limited access to education contributes to the poverty cycle

      Did this page help you?

      5
      Sme Calculator
      1 mark

      What is the purpose of progressive taxation?

      • An incentive for higher income individuals to work more and earn more income

      • To generate tax revenue for the government from all income levels equally

      • To redistribute wealth and reduce income inequality

      • To encourage investment and savings among lower income individuals

      Did this page help you?

      11 mark

      Which policy is most likely to reduce relative poverty?

      • make income tax rates less progressive

      • reduce benefit payments

      • reduce the minimum wage

      • reduce the rate of sales tax

      Did this page help you?

      2
      Sme Calculator
      1 mark

      Economic growth , shown by an outward shift on the production possibility frontier (PPF) diagram helps to alleviate poverty.

      Which factor  below leads to an outward shift in the PPF?

      • Reduction in capital investments

      • Increase in trade barriers

      • Improving education and training

      • Decrease in labour force participation

      Did this page help you?

      3
      Sme Calculator
      1 mark

      Which statement about the relationship between the national minimum wage and poverty is accurate?

      • Increasing the national minimum wage always leads to higher poverty rates

      • Decreasing the national minimum wage consistently reduces poverty rates

      • The impact of the national minimum wage on poverty depends on other economic factors

      • Poverty rates remain unaffected regardless of changes in the national minimum wage

      Did this page help you?

      4
      Sme Calculator
      1 mark

      Promoting economic growth helps to alleviate poverty leading to a positive impact upon economic development.

      What best describes economic growth and economic development?

       

      Economic Growth

      Economic Development

      A

      An increase in national output as measured by real GDP

      A sustained decrease in living standards for a country, for example education levels

      B

      A decrease in national output as measured by real GDP

      No change in livings standards over time

      C

      A rise in the value of foreign investments

      Reducing the poverty cycle

      D

      An increase in national output as measured by real GDP

      The sustainable increase in living standards for a country, for example education levels

        Did this page help you?

        5
        Sme Calculator
        1 mark

        Which factor below can contribute to poverty in developing countries?

        • High levels of foreign direct investment

        • Rapid population growth

        • Access to advanced technology

        • Stable political institutions

        Did this page help you?