WORKBOOK ANSWERS

Edexcel A2 Economics Unit 4

The Global Economy

This Answers document provides answers for the questions asked in the workbook. They are intended as a guide to give teachers and students feedback.

Topic 1

Poverty and inequality in developed and developing countries

Measuring poverty and inequality

1 A standard of living that fails to provide basic needs, such as food, shelter and clothing. (1 mark) Often measured by the number falling below a threshold level of income such as a $1.25 PPP a day. (1 mark)

2 The term refers to those who fall below a certain threshold income or poverty line. (1 mark) A standard of living that falls significantly below the majority. (1 mark) In the UK and EU, this is defined as those earning less than 60% of median income. (1 mark)

3 a Measures the percentage of households that experience overlapping deprivations in three dimensions: education, health and living conditions. (1 mark) A person who is ‘poor’ is deprived in at least 30% of the weighted indicators. (1 mark)

b Used to measure absolute poverty in less developed countries (1 mark) and its variables are: the percentage of a population likely to die before the age of 40 years (1 mark); the percentage of people over the age of 15 years who are illiterate (1 mark); the percentage of children under the age of 5 years who are underweight (1 mark); the percentage of people without access to public and private services such as health care and clean water. (1 mark)

c Used to measure relative poverty in industrialised (more developed) countries (1 mark) and includes: the percentage of people likely to die before the age of 60 (1 mark); the percentage of adults living with functional illiteracy (a degree of illiteracy that does not allow people to function at a basic level in reading and writing) (1 mark); the proportion of