Poverty and Inequality

A low-income country experiences extreme poverty in its rural areas.

What is a possible cause of this?

• development of better irrigation techniques

• distribution of international food aid

• high trade barriers imposed by high-income countries

• higher prices for agricultural produce

In countries with absolute poverty, low incomes can start a process that keeps incomes low.

What are the stages of this process?

• A

• B

• C

• D

One of the indicators of living standards is the Human Development Index (HDI).

What is not taken into consideration when calculating the HDI?

• education

• income per head

• level of savings

• life expectancy

The table shows the percentage employment in the primary, secondary and service sectors in four countries.

Which country is likely to be the most developed?

• A

• B

• C

• D

Many low-income countries rely on multinational companies (MNCs) to provide economic development.

What is a disadvantage of this for the low-income country?

• Local firms close because MNCs are more efficient.

• New production techniques are introduced.

• The balance of payments may improve.

• The MNCs have to pay taxes on their profits.

Developing countries are sometimes given aid by charities and foreign governments.

Which aid programme would be least likely to lead to long-term economic growth?

• the building of an irrigation system

• the construction of a new airport

• the distribution of gifts of food

• the training of technical staff

A government introduces state benefits for the unemployed and increases the top rate of income tax to pay for the benefits.

What effect will these changes have on poverty and the tax system?

• poverty increase

  tax system make it more progressive

• poverty increase

  tax system make it more regressive

• poverty reduce

  tax system make it more progressive

• poverty reduce

  tax system make it more regressive

The chart shows total world carbon emissions in 1995 and predicted emissions by 2035.

If the chart proves to be correct, what will have happened by 2035?

• Africa and the Middle East will have responsibility for the same amount of carbon emissions

  in 2035 as in 1995.

• Between 1995 and 2035, the Middle East will have increased its industrialisation by as much

  as Latin America.

• By 2035 the combined percentage of carbon emissions caused by Africa and Latin America

  will have doubled.

• The US will have decreased its carbon emissions by a smaller percentage than Western

  Europe.