The causes and effects of poverty
Poverty has several root causes, including unemployment and low wages. It also produces serious consequences for individuals and for the wider economy.
Real World
The 2008 financial crisis caused UK unemployment to rise above 2.5 million, pushing thousands of families into poverty as mortgage defaults and job losses cascaded — illustrating how cyclical unemployment directly triggers poverty.
Exam Focus
Separate causes (unemployment, low wages, ill health) from effects (reduced human capital, lower growth) clearly — mixing them loses marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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