Poverty as a Challenge Explained in Simple Words | NCERT Class 9 Economics

NCERT Class 9th Economics 

Chapter 3: Poverty as a Challenge (Enhanced Notes)

1. What is Poverty?

Poverty means not having enough resources to meet basic needs like food, clothing, shelter, clean water, education, and healthcare. It’s more than just a lack of money—it affects a person’s quality of life and opportunities.

• Example: A family that cannot afford two meals a day, lives in a makeshift shelter, and has no access to proper medical care is considered poor.
• Poverty traps people in a cycle where they struggle to improve their situation due to limited resources and opportunities.

2. How Many People Are Poor?

• In India, approximately one in five people (around 20%) live below the poverty line, though this number has decreased over time.
• Global Context:
  • Earlier, India had the highest number of extremely poor people.
  • By 2018, Nigeria surpassed India in terms of extreme poverty, as India’s poverty reduction efforts showed progress.
  • According to the World Bank (2020), about 9.2% of the global population (around 700 million people) lived below the international poverty line of $1.90 per day.

3. Urban Poverty (City Poverty)

• Who are the urban poor?
  • People like rickshaw pullers, cobblers, street hawkers, rag pickers, daily wage laborers, and domestic workers.
  • They often live in slums or informal settlements with poor living conditions (e.g., no clean water, sanitation, or electricity).
  • Challenges: No property ownership, unstable income, and limited access to education or healthcare.
• Example: A rag picker in Mumbai earns a daily wage but lives in a slum with no proper sanitation or security.

4. Rural Poverty (Village Poverty)

• Who are the rural poor?
  • Landless farmers, agricultural laborers, and small/marginal farmers (owning less than 2 hectares of land).
  • They depend on seasonal work or low-paying jobs and often face debt traps.
• Challenges: Lack of land ownership, dependence on unpredictable monsoon rains, and limited access to markets or technology.
• Example: A landless farmer in a village works on someone else’s farm for low wages and cannot afford to educate their children.

5. How Social Scientists Look at Poverty

Poverty is not just about money—it’s a multidimensional issue. Social scientists analyze it through:

• Income and Consumption:
  • Poverty is measured by how much a person earns or spends on basic needs.
  • If income/spending is below a certain level (poverty line), the person is considered poor.
• Other Indicators:
  • Illiteracy: Inability to read or write limits job opportunities.
  • Malnutrition/Weak Health: Poor diet leads to health issues, reducing productivity.
  • Lack of Healthcare: No access to hospitals or medicines.
  • Unemployment: No stable job or income source.
  • Unsafe Drinking Water: Leads to diseases like diarrhea.
  • Poor Sanitation: Lack of toilets or clean surroundings.
• Social Exclusion:
  • Poor people are often forced to live in isolated or marginalized areas (e.g., slums or remote villages), away from better schools, hospitals, or jobs.
  • Example: A Scheduled Caste family living in a separate part of a village may face discrimination and limited access to resources.
• Vulnerability:
  • Some groups are at higher risk of falling into poverty due to unstable jobs, low social status, or lack of support.
  • Example: A daily wage worker may lose income during illness or natural disasters like floods.

In One Line: Poverty is a lack of income, education, healthcare, clean water, job opportunities, and social inclusion, creating a cycle of deprivation.

6. Poverty Line

• The poverty line is the minimum income or spending needed to afford basic necessities like food, clothing, and shelter.
• If a person’s income or consumption falls below this line, they are considered poor.
• Example: A family earning less than ₹972 per month per person in rural India (2011–12) is below the poverty line.

7. How the Poverty Line is Decided in India

The poverty line is calculated based on:

• Calorie Requirement:
  • Rural areas: A person needs about 2,400 calories per day to maintain basic health and energy.
  • Urban areas: A person needs about 2,100 calories per day due to less physically demanding work.
  • The cost of food (like grains, pulses, etc.) to meet these calories is calculated.
• Income/Consumption:
  • Experts estimate the minimum money needed to buy enough food to meet the calorie requirement, plus other essentials like clothing and shelter.
  • This amount is updated regularly to account for inflation (rising prices).
• Poverty Line Estimates:
  • Tendulkar Committee (2011–12):
    • Rural: ₹972 per month per person.
    • Urban: ₹1,000 per month per person.
  • Rangarajan Committee (2014) (suggested higher levels):
    • Rural: ₹972 per month per person.
    • Urban: ₹1,407 per month per person.
  • Why the difference? The Rangarajan Committee included additional expenses like healthcare and education, making the poverty line higher.

8. Vulnerable Groups

Certain groups are more likely to be poor due to social, economic, or cultural disadvantages:

• Scheduled Castes (SC): Face discrimination and limited access to resources.
• Scheduled Tribes (ST): Often live in remote areas with poor infrastructure.
• Agricultural Laborers: Depend on low-paying, seasonal work.
• Casual Laborers: Work in unstable, low-skill jobs (e.g., construction workers).
• Example: A tribal family in a remote forest area may lack access to schools, hospitals, or markets, keeping them poor.

9. Inter-State Differences

Poverty levels vary across Indian states due to differences in economic growth, policies, and resources:

• High Poverty States:
  • Bihar and Odisha: High poverty due to low industrial growth, poor infrastructure, and dependence on agriculture.
• Low Poverty States:
  • Punjab and Haryana: Reduced poverty due to the Green Revolution (high agricultural productivity).
  • Kerala: Low poverty due to high investment in education, healthcare, and human development.
  • West Bengal: Reduced poverty through land reforms (redistributing land to the poor).
  • Andhra Pradesh and Tamil Nadu: Effective Public Distribution System (PDS) provides cheap food grains to the poor.

10. Who Measures Poverty in India?

• The National Sample Survey Organisation (NSSO) conducts surveys every few years to collect data on income, consumption, and living conditions.
• This data helps estimate how many people are below the poverty line and track poverty trends.

11. Global Poverty Definition

• The World Bank defines extreme poverty as living on less than $1.90 per day (adjusted for purchasing power parity, 2011 prices).
• In 2013, about 10.7% of the global population (around 767 million people) lived below this line.
• By 2020, this number dropped to 9.2%, but challenges like COVID-19 slowed progress.

12. UN Goals

• The United Nations Sustainable Development Goals (SDGs) aim to end extreme poverty by 2030 (Goal 1: No Poverty).
• This includes ensuring access to basic needs, social protection, and economic opportunities for all.

13. Main Causes of Poverty

Poverty in India has historical, economic, and social roots:

• British Colonial Rule: Exploited India’s resources, destroyed local industries, and left the country economically weak.
• Slow Economic Growth: Post-independence (until the 1980s), India’s economy grew slowly, limiting job creation.
• Population Growth: Rapid population increase strained resources and opportunities.
• Unequal Green Revolution: Benefits of modern farming (e.g., high-yield seeds) reached only richer farmers, leaving small farmers behind.
• Unequal Land Distribution: A few landlords own large lands, while many farmers are landless or own tiny plots.
• Social and Cultural Factors: Caste discrimination, gender inequality, and social exclusion limit opportunities for some groups.

14. Anti-Poverty Measures

India uses two main strategies to reduce poverty:

A. Promotion of Economic Growth

• How it helps:
  • Economic growth creates jobs, increases wages, and improves living standards.
  • The government earns more tax revenue, which can fund welfare programs.
• Example: Growth in industries like IT or manufacturing creates jobs for skilled workers, indirectly helping the poor.
• Challenge: Economic growth alone doesn’t always reach the poorest without targeted support.

B. Targeted Anti-Poverty Programs

These are government schemes designed to directly help the poor:

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA, 2005):
  • Goal: Provide 100 days of guaranteed wage employment per year to rural households.
  • Features:
    • Jobs include building roads, canals, or wells.
    • At least one-third of jobs are reserved for women.
    • If no job is provided within 15 days, workers get an unemployment allowance.
    • Wages follow the Minimum Wages Act.
  • Impact: Helps rural poor earn income and improves village infrastructure.
• Prime Minister Rozgar Yojana (PMRY, 1993):
  • Goal: Support educated, unemployed youth in rural and small-town areas to start small businesses.
  • How it helps: Provides loans, training, and subsidies for self-employment.
  • Example: A young person starts a small shop or tailoring business with PMRY support.
• Swarnajayanti Gram Swarozgar Yojana (SGSY):
  • Encourages group-based self-employment in rural areas (e.g., forming self-help groups for small businesses).
• Pradhan Mantri Gramodaya Yojana (PMGY):
  • Funds rural development projects like schools, roads, and healthcare centers.
• Antyodaya Anna Yojana (AAY):
  • Provides subsidized food grains (e.g., rice, wheat) to the poorest families through the Public Distribution System (PDS).

15. Why Both Strategies Are Needed

• Economic Growth: Creates jobs, raises incomes, and increases government funds for welfare.
• Targeted Programs: Directly support the poor by providing jobs, food, and resources.
• Together: Growth creates opportunities, while programs ensure the poor can access them. For example, MGNREGA provides immediate income, while economic growth creates long-term jobs.

16. Economic Growth and Poverty Reduction: Connection

• How Growth Reduces Poverty:
  • Fast economic growth creates better-paying jobs (e.g., in factories or services).
  • Higher wages allow families to spend on education, healthcare, and nutrition.
  • More income leads to business investments, creating a cycle of job creation.
• Government Benefits:
  • Economic growth increases tax revenues, enabling funding for schemes like MGNREGA or PDS.
  • Example: A growing economy allows the government to build more schools or provide free food grains to the poor.
• Real-Life Impact: In states like Punjab, agricultural growth reduced poverty by increasing farmers’ incomes.

17. New Approaches to Fight Poverty

To meet the UN SDG goal of ending extreme poverty by 2030, India needs innovative and technology-driven solutions:

(i) JAM Trinity (Jan Dhan, Aadhaar, Mobile)

• What is it?:
  • Jan Dhan: Bank accounts for the poor to access financial services.
  • Aadhaar: Unique ID card to verify identity and prevent fraud.
  • Mobile: Phones to connect people to government services and payments.
• How it helps:
  • The government can send money or subsidies directly to bank accounts (Direct Benefit Transfer, DBT).
  • Reduces middlemen and corruption (e.g., no leakage of funds).
  • Example: A farmer receives a subsidy for fertilizers directly in their Jan Dhan account, verified by Aadhaar.
• Impact: Over 40 crore Jan Dhan accounts were opened by 2023, bringing millions into the banking system.

(ii) Universal Basic Income (UBI)

• What is it?: A proposed idea (from the Economic Survey 2017) where the government gives a fixed amount of money to everyone (or only the poor) regularly.
• How it works:
  • Replaces multiple subsidies (e.g., food, fuel) with direct cash transfers.
  • Money is sent to bank accounts via JAM Trinity, reducing corruption.
• Benefits:
  • Simplifies welfare delivery.
  • Gives people flexibility to spend on their needs (e.g., food, education).
• Challenges:
  • Expensive to implement for a large population.
  • Still under discussion, not yet implemented in India.
• Example: A pilot project in Finland gave €560 per month to 2,000 unemployed people, improving their financial stability.

In One Line:

India is adopting tech-driven solutions like JAM Trinity and exploring UBI to ensure direct, efficient, and corruption-free help reaches the poor.

18. Key Points for the Future

• India’s economy has grown rapidly since the 1990s, but job creation has not kept pace, leaving many poor without opportunities.
• To end poverty, India needs:
  • Stronger anti-poverty programs with better implementation.
  • Technology (like JAM) to deliver benefits efficiently.
  • Focus on education, skills, and healthcare to break the poverty cycle.
• The UN SDG goal (2030) pushes India to innovate and ensure no one is left behind.

19. Quick Summary

• Poverty: Lack of basic needs (food, shelter, education, healthcare) and opportunities.
• Poverty Line: Minimum income needed for basic necessities (e.g., ₹972 rural, ₹1,407 urban in 2014).
• Vulnerable Groups: SC, ST, agricultural/casual laborers.
• Causes: Colonial exploitation, slow growth, population, unequal resources.
• Solutions: Economic growth + targeted programs (MGNREGA, PMRY, AAY) + new approaches (JAM, UBI).
• Goal: End extreme poverty by 2030 (UN SDG).

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Additions to Enrich the Notes:

1. Visual Aids (for better understanding):
   • Diagram Idea: Create a flowchart showing how economic growth and targeted programs work together to reduce poverty.
   • Table: Compare poverty line estimates (Tendulkar vs. Rangarajan) or poverty levels across states.
2. Real-Life Examples:
   • MGNREGA: A village in Rajasthan used MGNREGA funds to build a pond, improving water access and creating jobs.
   • JAM Trinity: A widow in Uttar Pradesh received her pension directly in her Jan Dhan account, avoiding delays.
3. Data Updates:
   • As of 2023, India’s poverty rate is estimated to be around 15% (down from 20% in 2011–12), per NSSO and World Bank data.
   • Multidimensional Poverty Index (MPI): India’s MPI (2022) shows progress in reducing poverty across health, education, and living standards.
4. Critical Thinking Questions (for students):
   • Why do some states like Bihar still have high poverty despite India’s overall growth?
   • How can UBI be implemented without straining India’s budget?
   • How does caste discrimination contribute to poverty, and what can be done about it?

These additions make the notes more engaging, detailed, and useful for exam preparation or deeper understanding. 

Question-Answer

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1-Mark Questions and Answers

1. What is poverty?
   Answer: Poverty is the inability to afford basic needs like food, clothing, shelter, education, and healthcare.

2. What is the poverty line?
   Answer: The poverty line is the minimum income or spending needed to meet basic necessities like food, clothing, and shelter.

3. Name one vulnerable group prone to poverty in India.
   Answer: Scheduled Castes (SC).

4. Which organization measures poverty in India?
   Answer: National Sample Survey Organisation (NSSO).

5. What is the international poverty line defined by the World Bank?
   Answer: $1.90 per day.

6. Name one state with high poverty levels in India.
   Answer: Bihar.

7. What is the full form of MGNREGA?
   Answer: Mahatma Gandhi National Rural Employment Guarantee Act.

8. What is the goal of the UN Sustainable Development Goals (SDGs) regarding poverty?
   Answer: To end extreme poverty by 2030.

9. What does the 'J' in JAM Trinity stand for?
   Answer: Jan Dhan (bank accounts for the poor).

10. Name one cause of poverty in India.
    Answer: Unequal distribution of land and resources.

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2-Mark Questions and Answers

1. Define urban and rural poverty with one example each.
   Answer:

   • Urban Poverty: Poor people in cities, like rickshaw pullers, living in slums with unstable jobs.
     Example: A street hawker in Delhi living in a slum.
   • Rural Poverty: Poor people in villages, like landless farmers, dependent on low-paying agricultural work.
     Example: A marginal farmer in Bihar with no land ownership.

2. What is the calorie requirement used to calculate the poverty line in India?
   Answer:

   • Rural areas: A person needs about 2,400 calories per day.
   • Urban areas: A person needs about 2,100 calories per day.

3. Name two indicators used by social scientists to measure poverty besides income.
   Answer:

   • Illiteracy (inability to read or write).
   • Malnutrition or weak health.

4. What is social exclusion in the context of poverty?
   Answer: Social exclusion means poor people are forced to live in marginalized areas, away from opportunities like good schools, jobs, or healthcare, due to poverty or discrimination.

5. Why is MGNREGA important for rural poverty reduction?
   Answer: MGNREGA provides 100 days of guaranteed wage employment per year to rural households, helping them earn income and improve village infrastructure like roads or wells.

6. Name two states that reduced poverty and mention one reason for each.
   Answer:

   • Punjab: High agricultural growth due to the Green Revolution.
   • Kerala: Focus on education and healthcare.

7. What is the role of Aadhaar in the JAM Trinity?
   Answer: Aadhaar provides a unique identity card to verify people’s identities, ensuring government benefits reach the right person and reducing corruption.

8. What is the purpose of the Prime Minister Rozgar Yojana (PMRY)?
   Answer: PMRY helps educated, unemployed youth in rural and small-town areas start small businesses by providing loans and training.

9. Name two causes of poverty in India.
   Answer:

   • Slow economic growth after independence.
   • Unequal distribution of land and resources.

10. What is the goal of the Antyodaya Anna Yojana (AAY)?
    Answer: AAY provides subsidized food grains (like rice and wheat) to the poorest families through the Public Distribution System (PDS).

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3-Mark Questions and Answers

1. Explain how social scientists measure poverty using indicators other than income.
   Answer: Social scientists measure poverty through multiple indicators besides income:

   • Illiteracy: Lack of ability to read or write limits job opportunities and keeps people poor.
   • Malnutrition/Weak Health: Poor diet leads to health issues, reducing productivity and income.
   • Lack of Healthcare and Sanitation: No access to hospitals, clean water, or toilets increases vulnerability to diseases, trapping people in poverty.
     These indicators show that poverty is multidimensional, affecting quality of life beyond just money.

2. How does the JAM Trinity help reduce poverty in India?
   Answer: The JAM Trinity (Jan Dhan, Aadhaar, Mobile) helps reduce poverty by:

   • Jan Dhan: Provides bank accounts to the poor, enabling access to financial services.
   • Aadhaar: Ensures benefits reach the right person through unique identification, reducing fraud.
   • Mobile: Connects people to government schemes via mobile phones, allowing direct cash transfers.
     Together, they enable Direct Benefit Transfers (DBT), reducing middlemen and corruption, ensuring subsidies or funds reach the poor efficiently.

3. Why are Scheduled Castes (SC) and Scheduled Tribes (ST) considered vulnerable to poverty?
   Answer:

   • Scheduled Castes (SC): Face social discrimination and exclusion, limiting access to education, jobs, and resources, which keeps them poor.
   • Scheduled Tribes (ST): Often live in remote areas with poor infrastructure, lacking schools, hospitals, or markets, increasing their poverty risk.
   • Both groups face systemic barriers like low social status and lack of opportunities, making them more vulnerable to poverty.

4. How did Punjab and Kerala reduce poverty?
   Answer:

   • Punjab: Reduced poverty through high agricultural growth due to the Green Revolution, which increased crop yields, farmer incomes, and job opportunities.
   • Kerala: Focused on human development by investing in education, healthcare, and social welfare, improving literacy and health, which lifted people out of poverty.
   • Both states used different strategies—agriculture for Punjab and social development for Kerala—to effectively reduce poverty.

5. What are the main features of MGNREGA (2005)?
   Answer: The key features of MGNREGA are:

   • Provides 100 days of guaranteed wage employment per year to rural households for unskilled work like building roads or canals.
   • Ensures one-third of jobs are reserved for women to promote gender equality.
   • If no job is provided within 15 days, workers receive an unemployment allowance, ensuring income security.

6. What is Universal Basic Income (UBI), and how can it help reduce poverty?
   Answer:

   • Universal Basic Income (UBI) is a proposed scheme where the government gives a fixed amount of money regularly to everyone (or the poor) directly into their bank accounts.
   • How it helps:
     • Replaces multiple subsidies, simplifying welfare delivery.
     • Reduces corruption by using direct transfers via JAM Trinity.
     • Gives people flexibility to spend on needs like food or education, improving their living standards.

7. Explain two causes of poverty in India with examples.
   Answer:

   • Unequal Land Distribution: Large landholdings are owned by a few, while many farmers are landless or own small plots, limiting their income.
     Example: A landless farmer in Bihar works for low wages on someone else’s land.
   • Population Growth: Rapid population increase strains resources, reducing opportunities for the poor.
     Example: A large family in a village struggles to afford food and education for all children.

8. How does economic growth help reduce poverty?
   Answer: Economic growth reduces poverty by:

   • Creating more jobs with better wages, increasing incomes for the poor.
   • Generating higher tax revenues for the government, which funds welfare schemes like MGNREGA or PDS.
   • Encouraging investment in businesses, leading to more employment opportunities and improved living standards.

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4-Mark Questions and Answers

1. Explain the two main strategies used by the Indian government to reduce poverty.
   Answer: The Indian government uses two main strategies to reduce poverty:

   • Promotion of Economic Growth:
     • Economic growth creates jobs, increases wages, and improves living standards.
     • It generates more tax revenue, allowing the government to fund welfare programs.
     • Example: Growth in the IT sector created jobs, indirectly benefiting the poor through better wages.
     • Limitation: Growth alone may not reach the poorest without targeted help.
   • Targeted Anti-Poverty Programs:
     • These are direct schemes like:
       • MGNREGA: Provides 100 days of rural employment, ensuring income for the poor.
       • Antyodaya Anna Yojana (AAY): Supplies subsidized food grains to the poorest families.
     • Example: A rural worker earns wages through MGNREGA to build a canal, improving their income.
     • These programs provide immediate relief and support to the poor.
       Both strategies complement each other: growth creates opportunities, while programs ensure the poor benefit directly.

2. Describe the role of the JAM Trinity and Universal Basic Income (UBI) as new approaches to fight poverty in India.
   
   

   • Answer:
   • JAM Trinity (Jan Dhan, Aadhaar, Mobile):
     • Jan Dhan: Opens bank accounts for the poor to access financial services.
     • Aadhaar: Provides a unique ID to verify identities, ensuring benefits reach the right person.
     • Mobile: Connects people to government schemes via phones for direct transfers.
     • Impact: Enables Direct Benefit Transfers (DBT), reducing corruption and leakages. For example, subsidies for fertilizers reach farmers’ accounts directly.
   • Universal Basic Income (UBI):
     • A proposed idea (Economic Survey 2017) to give a fixed amount of money to everyone or the poor regularly.
     • Replaces multiple subsidies, simplifying welfare delivery.
     • Uses JAM Trinity for direct, corruption-free transfers.
     • Example: A poor family could use UBI to buy food or pay for education, improving their life.
       Both approaches use technology to ensure efficient, transparent delivery of benefits, targeting poverty reduction effectively.

3. Why do some states in India have lower poverty levels? Discuss with examples of two states.
   Answer: Some states in India have reduced poverty due to effective policies and development strategies:

   • Punjab:
     • Reason: High agricultural growth from the Green Revolution increased crop yields (e.g., wheat, rice), raising farmers’ incomes and creating jobs.
     • Example: Farmers in Punjab used modern seeds and irrigation, leading to higher earnings and lower poverty.
   • Kerala:
     • Reason: Strong focus on human development through investments in education, healthcare, and social welfare, improving literacy and health.
     • Example: Kerala’s high literacy rate (near 100%) and access to healthcare enabled people to get better jobs, reducing poverty.
       These states show that targeted interventions (agriculture in Punjab, education in Kerala) can significantly lower poverty levels.

4. Discuss the causes of poverty in India and suggest one measure to address each.

   • Answer:Causes of Poverty and Measures:

   • British Colonial Rule: Exploited India’s resources and destroyed local industries, leaving the economy weak.
     • Measure: Promote industrial growth through schemes like Make in India to create jobs.
   • Population Growth: Rapid population increase strains resources, limiting opportunities for the poor.
     • Measure: Spread awareness about family planning and provide free education to reduce population pressure.
   • Unequal Land Distribution: A few landlords own large lands, while many farmers are landless.
     • Measure: Implement land reforms like those in West Bengal to redistribute land to the poor.
   • Social Discrimination: Caste and gender inequality limit access to education and jobs for groups like SC/ST.
     • Measure: Enforce reservation policies and provide scholarships for marginalized groups to improve access to opportunities.
       These measures address root causes, helping break the cycle of poverty.

5. How does MGNREGA contribute to poverty reduction in rural India? Explain its key features.
   Answer:
   MGNREGA (2005) reduces poverty in rural India by providing guaranteed employment, ensuring income security, and improving village infrastructure.

   • Key Features:
   • 100 Days of Work: Guarantees at least 100 days of unskilled wage employment per year to rural households, helping them earn a stable income.
   • Women’s Participation: Reserves one-third of jobs for women, promoting gender equality and empowering women financially.
   • Unemployment Allowance: If no job is provided within 15 days, workers receive a daily allowance, ensuring income support.
   • Minimum Wages: Wages are paid as per the Minimum Wages Act, ensuring fair compensation.
     Impact: For example, a rural worker in Rajasthan earns wages by building a pond under MGNREGA, which also improves water access for the village, reducing poverty and enhancing living conditions.

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Tips for Students:

• For 1-Mark Questions: Focus on definitions, names, or single-point answers. Be precise.
• For 2-Mark Questions: Provide two clear points or a definition with an example.
• For 3-Mark Questions: Structure your answer with three points or a detailed explanation with examples.
• For 4-Mark Questions: Use a clear structure (e.g., introduction, points, examples, conclusion) and cover multiple aspects of the question.