Poverty — Paper 1 · IGCSE Economics (9-1) 0987

19 The government redistributes income more evenly. What is most likely to increase? A the incentive to work B the level of savings C the need for welfare payments D the rate of inflation

1 marks

Answer: D

This question in 0987/11 May/June 2020

25 An additional 700 000 UK children and pensioners fell into relative poverty between 2013 and 2017. What might be the reason for this? A Direct taxes had increased, and indirect taxes had fallen. B Real gross domestic product was rising faster than the population. C The death rate was exceeding the birth rate. D The real value of government welfare benefits had fallen.

1 marks

Answer: D

This question in 0987/11 May/June 2020

24 Due to war, some people are living in absolute poverty. What is the main indicator of absolute poverty for these people? A dependence on aid for medical treatment B lack of transport to escape abroad C living in tents in temporary camps D receiving insufficient food for basic nutrition

1 marks

Answer: D

This question in 0987/12 May/June 2020

24 In countries with absolute poverty, low incomes can start a process that keeps incomes low. What are the stages of this process? A low incomes  low consumption  low prices  low output  low incomes B low incomes  low government spending  high taxation  low employment  low incomes C low incomes  low investment  high profits  low dividends  low incomes D low incomes  low saving  low investment  low productivity  low incomes

1 marks

Answer: D

This question in 0987/12 Oct/Nov 2020

25 The richest 60% of the population of a high-income economy received an increase in income. The income of the rest of the population did not change. What happened to absolute and relative poverty? absolute poverty relative poverty A increased increased B increased remained constant C remained constant increased D remained constant remained constant

1 marks

Answer: C

This question in 0987/11 May/June 2021

18 A country is experiencing unemployment. It has a progressive income tax policy and benefits for the poor. The government aims to increase employment and reduce income inequality. Which fiscal policy measures are most likely to achieve these aims? income tax benefits for the poor A decrease the highest tax rate decrease B increase the highest tax rate decrease C decrease the lowest tax rate increase D increase the lowest tax rate increase

1 marks

Answer: C

This question in 0987/12 May/June 2021

25 The richest 60% of the population of a high-income economy received an increase in income. The income of the rest of the population did not change. What happened to absolute and relative poverty? absolute poverty relative poverty A increased increased B increased remained constant C remained constant increased D remained constant remained constant

1 marks

Answer: C

This question in 0987/12 May/June 2021

24 Poverty in households may be defined in relative terms. What indicates relative poverty? A falling below society’s expected standard of living B income level required to meet basic needs C lack of access to clean water D living on less than $2 a day

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2021

22 The table shows how three people, X, Y and Z, spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% entertainment and leisure 35% 35% 25% luxury goods 35% 40% 25% What is the likely order of income, from lowest income to highest income, for these three people? A Y  X  Z B Y  Z  X C Z  X  Y D Z  Y  X

1 marks

Answer: C

This question in 0987/11 May/June 2022

23 A government wants to reduce both its budget deficit and the amount of poverty in its country. Which fiscal policy measure is most likely to achieve both of these aims? A decreasing the rate of progressive income tax B decreasing government spending on welfare benefits C increasing the rate of progressive income tax D increasing government spending on welfare benefits

1 marks

Answer: C

This question in 0987/12 May/June 2022

1 The Chinese government is concerned about the level of poverty and the need for more resources in low-income regions of the country. As a result, it is increasing its expenditure in those regions and reducing it in high-income regions. Which economic concept does this government policy illustrate? A diseconomies of scale B market forces C opportunity cost D specialisation

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2022

26 A fall in the level of absolute poverty can be best achieved by reducing A government unemployment benefits. B income tax. C the number of homeless people. D the rate of inflation.

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2022

24 During a recession, many people in a city become unemployed and their incomes fall. Some people can no longer pay the rent on their houses or buy the food they need. What is the effect of the recession in the city? absolute poverty relative poverty A increases increases B increases unchanged C unchanged increases D unchanged unchanged

1 marks

Answer: A

This question in 0987/12 May/June 2023

25 The Peruvian government set itself the target of reducing the number of its population in poverty. What change does not indicate that the Peruvian government had made progress towards this target? A a rise in employment B a rise in infant mortality C a rise in life expectancy D a rise in the level of adult literacy

1 marks

Answer: B

This question in 0987/12 May/June 2023

11 The table shows the proportion of disposable income spent on three different goods by four different households. Which household is likely to have the lowest income? food transport holidays % % % A 50 15 5 B 35 18 10 C 30 20 15 D 20 25 20

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2025

25 In many high-income economies, increasing income inequality has led to greater levels of poverty. Which combination of policies would aim to reduce income inequality? fiscal policy supply-side policy A decrease corporation tax create more competition B increase income tax reduce the power of trade unions C increase inheritance tax increase the national minimum wage D increase sales tax privatise more public sector firms

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2025