The Problem of Poverty (AQA A-Level Economics): Flashcards

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The Problem of Poverty
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What poverty means

Lacking money for basic needs like food, clothing, shelter

Two main sources of poverty

Low real national income & inequalities in distribution

Absolute poverty definition

Deprivation of fundamental needs at fixed standard over time

Relative poverty definition

Income below set proportion of average income in society

UK poverty line threshold

60% of median income

Triple lock system three measures

Average earnings, CPI inflation, or 2.5% increase

Educational gap for poor children at age 3

Nine months behind wealthier children

GCSE grade gap for children on free school meals

1.7 grades lower than peers

Birth weight difference in poorest vs richest UK areas

200 grams less in poorest areas

Life expectancy gap: professional vs unskilled workers

Professional workers live 8 years longer on average

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