IGCSE Development Studies: Specimen Questions with Answers 3 - 4 of 98

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Indicators Poverty in a Country

Question 3 (3 of 7 Based on Passage)

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Explain what do you mean by GDP?

Explanation

GDP is the worth of net produce in a country in a given financial year. For example- If it is said that a countries GDP fell by 2 % it means that the country՚s produce in the last year has fallen by 2 % . The reasons for fall in GDP can be –

  • Fall in the demand by the consumers.
  • Adverse impact on manufacturing and service sector affected due to natural causes like, monsoon.

GDP is the report prepared at the end of the financial year. Effect of decline in GDP on an economy is as follows:

  • Unemployment: A reduction in production means that less people are employed which leads to less amount of money with the people to make purchases.
  • Market situation won՚t be a good one
  • A fall in GDP will result in reduction in the size of the economy.
  • A decrease in the GDP will cause a fall in the average rate of interest in an economy.

Question 4 (4 of 7 Based on Passage)

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What are the indicators of poverty in a country?

Explanation

Poverty refers to the condition in which the people of a country lack monetary resources and basic standard of living. It depicts that the income level is so low that the basic human requirements can be met. People who are struck by poverty do not have proper housing facility, clean water, proper and healthy food, medical care. Every nation has its own threshold level of poverty which determines how many people in a country are living in poverty.

Poverty indicators are as follows:

  • Illiteracy Level
  • Lack of general resistance due to malnutrition
  • Lack of access to proper medical care
  • Lack of various opportunities
  • Lack of access to safe drinking water
  • Lack of sanitization facilities