IGCSE Development Studies: Specimen Questions with Answers 1 - 2 of 98

Passage

Indicators Poverty in a Country

Question 1 (1 of 7 Based on Passage)

Edit

Write in Short

Short Answer▾

Name any two countries with highest level of poverty and state the reason for poverty prevailing in those countries.

Explanation

“Poverty is defined as not having enough material possession or income to cover a person’s basic personal needs, sometimes so extreme where a person lacks food, clothing, and shelter. ” It is the ratio of the total number of people in each age group whose income is below the poverty line. Poverty is a cyclical trap i. e. for people to rise above the poverty level they need to get education, proper health care facilities, and access to clean drinking water, and job opportunities to improve their financial condition.

Two countries with highest level of poverty are:

  • South Africa (26. 6% )
  • Costa Rica (20. 9% )

Reason for highest level of poverty in the world is that they have the highest inequality gap in the world where the top one percent income earners take away the 20% of all the income. Poverty is also marked by the existence of high level of unemployment and lack of high paying jobs.

Question 2 (2 of 7 Based on Passage)

Edit

Write in Short

Short Answer▾

Give three disadvantages of GDP as poverty indicator.

Explanation

Disadvantages of Using GDP as an Indicator of Economic Development Are

  • GDP can hide inequalities as it does not show the distribution of wealth
  • GDP can be manipulated by the governments of the country who show themselves as poor to collect more aid for various projects.

  • GDP does not include informal economies or subsistence level which is not an important factor in less developed countries.

  • GDP fails to indicate whether a country’s progress is sustainable or not.

  • It does not consider environment quality, health and education levels of a country, advancement of technology, activities that are not conducted in the market, increase in the inequality gap etc.