Economic growth lifts incomes and reduces poverty rates

Steps:

• Identify poverty as insufficient income or resources for basic needs.
• Evaluate how each option impacts income distribution and access to opportunities.
• Link greater economic growth to higher overall wealth and job creation.
• Eliminate options that worsen inequality or limit public services.

Why A is correct:

• Economic growth increases GDP per capita, raising average incomes and enabling more people to afford essentials, as per the definition of absolute poverty reduction.

Why the others are wrong:

• B: Less spending on education reduces skills and future earning potential, trapping people in low-income cycles.
• C: More regressive tax burdens low-income groups disproportionately, widening income gaps without aiding the poor.
• D: Privatisation of hospitals raises costs for low-income users, limiting healthcare access and exacerbating poverty.

Final answer: A