When individuals cannot escape poverty, this situation is called a ____.

When individuals cannot escape poverty, this situation is called a ____.

• A. Cycle of poverty
• B. Poverty trap
• C. Relative poverty
• D. Absolute poverty

Answer: (B)

A poverty trap describes the situation where people cannot escape poverty due to interlocking barriers that reinforce each other. Low income, lack of assets, poor health, limited education, and restricted access to credit or services make it hard to improve one’s situation. Any extra earnings or savings can be offset by higher costs, loss of benefits, or increased debt, so progress doesn’t translate into lasting improvement. Over time these factors feed back into one another, keeping individuals stuck in poverty despite their efforts. Absolute poverty means not having enough to meet basic needs against a fixed standard, and relative poverty means being poorer than the typical standard in one’s society. The term poverty trap specifically highlights the obstacles that prevent escape, making it the best fit for this idea.

A poverty trap describes the situation where people cannot escape poverty due to interlocking barriers that reinforce each other. Low income, lack of assets, poor health, limited education, and restricted access to credit or services make it hard to improve one’s situation. Any extra earnings or savings can be offset by higher costs, loss of benefits, or increased debt, so progress doesn’t translate into lasting improvement. Over time these factors feed back into one another, keeping individuals stuck in poverty despite their efforts.

Absolute poverty means not having enough to meet basic needs against a fixed standard, and relative poverty means being poorer than the typical standard in one’s society. The term poverty trap specifically highlights the obstacles that prevent escape, making it the best fit for this idea.