Before you start

Make sure you're comfortable with these topics first:

Method

Define wealth (a stock of owned assets) and income (a flow of regular money) precisely, and be ready to give one example of each.
Define absolute poverty (a fixed minimum needed for survival) and relative poverty (relative to the normal living standard of a given society at a given time), and give one example that would count as relative but not absolute poverty.
Learn that wealth is typically distributed more unevenly than income, and be able to explain why: assets accumulate and can be inherited across generations, whereas income mostly reflects current earnings.
When answering a question naming a definition of poverty, apply that specific definition rather than switching to the other one partway through the answer.
Use a named perspective to explain wealth/income inequality where asked, for example a Marxist view that inequality is structural to capitalism, or a New Right view that some inequality creates incentives to work and invest.
For a 'discuss' question on whether poverty/wealth gaps are a problem or how they should be tackled, plan a paragraph of evidence/argument for one side, a paragraph for the other, and a supported conclusion.

Worked example

In a country, the poorest 20 percent of households hold 5 percent of total wealth, while the richest 20 percent of households hold 60 percent of total wealth. Calculate how many times greater the richest group's share of wealth is compared with the poorest group's share, and explain whether this describes wealth inequality or income inequality.

Divide the richest group's share by the poorest group's share: 60 / 5.
Calculate: 60 / 5 = 12, so the richest 20 percent hold 12 times the wealth share of the poorest 20 percent.
Identify the type of inequality: since the question refers to owned assets held by households rather than money received in a given period, this describes wealth inequality, not income inequality.
Note the wider point: wealth gaps like this are typically larger than income gaps in the same society, because wealth can be accumulated and inherited over time.

Practice questions

Try each question, then tap to reveal the answer.

Q1Define wealth.Show answer

Answer: The stock of assets owned by a person or household, such as property, savings, shares and pension funds.

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Q2Define income.Show answer

Answer: The flow of money a person or household regularly receives, mainly from wages, benefits or returns on investment.

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Q3What is absolute poverty?Show answer

Answer: A lack of the resources needed for physical survival, such as adequate food, clean water, clothing and shelter, measured against a fixed minimum standard.

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Q4What is relative poverty?Show answer

Answer: Poverty defined in relation to the normal standard of living in a specific society at a specific time, so a person can have survival needs met but still be unable to participate fully in ordinary social life.

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Q5Give an example of someone who might be in relative poverty but not absolute poverty.Show answer

Answer: A family in a wealthy country who can afford enough food and basic shelter but cannot afford a school trip, adequate heating in winter, or to celebrate a birthday, because their income is far below the society's normal standard.

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Q6Explain why wealth tends to be distributed more unevenly than income.Show answer

Answer: Because wealth is an accumulated stock of assets that can grow over time and be passed down through inheritance, whereas income mainly reflects what a person is currently earning, so wealth gaps compound across generations in a way income gaps do not.

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Exam-style questions

Written in the style of a GCSE Sociology exam paper, with a full mark scheme.

Q1[6 marks]

Explain two differences between absolute poverty and relative poverty.

Show mark scheme

Tick each line you got. Your score builds from the marks on the scheme.

identifies a first difference, e.g. what each definition measures poverty against.1 mark
develops it, e.g. absolute poverty is measured against a fixed minimum needed for survival, while relative poverty is measured against the normal living standard of a specific society at a specific time.1 mark
identifies a second difference, e.g. how each definition changes, or does not, over time and place.1 mark
develops it, e.g. an absolute poverty threshold can in principle stay the same everywhere, while a relative poverty threshold rises as a society's average living standards rise, so relative poverty can persist even as absolute poverty falls.1 mark
gives an accurate example illustrating one of the definitions.1 mark
overall accuracy and clarity of the explanation.1 mark

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Q2[12 marks]

Discuss the view that relative poverty is a more useful way of understanding poverty in the UK today than absolute poverty. Use sociological evidence in your answer.

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Tick each line you got. Your score builds from the marks on the scheme.

simple statements about poverty with little reference to either definition.2 marks
describes relative and/or absolute poverty with limited development or one-sided argument.2 marks
compares the two definitions with named strengths and weaknesses, some evaluation.2 marks
sustained, balanced comparison reaching a supported, well-justified conclusion.2 marks
captures social exclusion, being unable to participate in normal social life such as afford outings, adequate heating or a phone, which matters in a wealthy society where almost nobody lacks bare survival needs; adjusts as living standards rise, so it stays meaningful over time.2 marks
relative poverty is harder to measure precisely and is affected by political choices about where to draw the line; absolute poverty measures a clearer, universal minimum that allows comparison between very different countries and over long time periods; some argue relative poverty risks calling people 'poor' even when their basic needs are met.1 mark
Indicative conclusion: credit a conclusion that argues both are useful for different purposes, for example relative poverty for judging living standards and social exclusion within a rich country like the UK, and absolute poverty for global comparisons or historical trends, rather than treating one as simply 'better'.1 mark

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See real GCSE Sociology past-paper questions, with official mark schemes →

Free printable worksheet

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Explanations of and Solutions to Poverty Classifying Social Class and the Growth of an Underclass Social Mobility

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Poverty and Wealth

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Method

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Exam-style questions

Free printable worksheet

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