Economics (AS & A Level) · Feb / March 2021 · Paper 32 · Question 16

In which circumstances is a poverty trap least likely to operate?

1. AA female worker is paid less than a male worker for doing the same job.
2. BA worker is paid the minimum wage and refuses a higher paid job because net income is lower after tax.
3. CA worker refuses higher paid work as it means more expensive travel and childcare costs.
4. DAn unemployed worker refuses a job because earnings are less than unemployment benefit.

As printed in the paper