Many economists think relative poverty will rise while absolute poverty will decline in both India and the United States of America. Poverty levels may be affected by factors such as education, the technology being used and the number of new businesses set up, including sole proprietorships.
(a)[2]
Define ‘absolute poverty’ in this context.
(b)[4]
Explain two different opportunity costs that may be involved when a person becomes a sole proprietor.
(c)[6]
Analyse, using a production possibility curve, the effect of advances in technology.
(d)[8]
Discuss whether higher spending on education will always lower absolute poverty.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A shortage of access to basic necessities” …