A Level Economics AQA Practice Exam

What characterizes absolute poverty?

1. A temporary lack of financial resources

2. A condition below a necessary level of income for basic living standards

3. A relative measure based on societal norms

4. An issue faced primarily by the unemployed

The correct answer is: A condition below a necessary level of income for basic living standards

Absolute poverty is characterized by a condition where individuals or families have income levels that fall below a necessary threshold needed to maintain basic living standards, which typically includes access to essentials such as food, clean water, clothing, shelter, and healthcare. This measure focuses on a specific, quantifiable level of resources needed to survive and function adequately. The term "absolute" distinguishes this concept from relative poverty, which is defined in relation to the economic status of the broader society and the prevailing standards of living within it. Absolute poverty reflects a dire situation where survival itself may be at risk, making it a critical issue for policymakers and humanitarian efforts. Additionally, while issues of unemployment can contribute to poverty levels, absolute poverty can affect individuals regardless of their employment status, encompassing those who may be employed but still earn insufficient income to escape poverty. Furthermore, it is not merely a temporary lack of resources; rather, it signifies a persistent and severe deficiency in terms of essential needs.