Question

ASSIGNMENT 2 (a) Distinguish between absolute and relative poverty. (b) Explain how low human capital is both a cause and consequence of poverty. Explain how an increase in unemployment increases poverty in a country. (d) For two countries of your choice, research unemployment figures since 2008 and election results. Do you see a pattern? (e) In a cause and effect chain reaction, explain how income growth is both a cause of poverty and a solution to reduce poverty.

Answer 1

(A). Absolute poverty is when household income is below a certain level, which makes it impossible for the person or family to meet basic needs of life including food, shelter, safe drinking water, education, healthcare, etc.

Relative poverty is the condition in which people lack the minimum amount of income needed in order to maintain the average standard of living in the society in which they live. Relative poverty is considered the easiest way to measure the level of poverty in an individual country.

(B). Human capital is an intangible asset or quality not listed on a company's balance sheet. But employers can improve the quality of that capital by investing in employees the education, experience, and abilities of employees all have economic value for employers and for the economy as a whole.

Nearly all possible consequences of poverty have an impact on children' lives. Poor infrastructures, unemployment, lack of basic services and income reflect on their lack of education, malnutrition, violence at home and outside, child labor, diseases of all kinds, transmitted by the family or through the environment.

(C). When increase in unemployment also increase poverty, because increase in unemployment some peoples are go under the poverty line, and there are not take essential goods & services,