Directions: Read the following excerpt from the e-text and answer the question below using the RACES method. Here is an example of the RACES method in Social Studies. Here is a "How to" video for the RACES method in Social Studies. Here is the grading rubric.

Question

Excerpt from textbook: Question: How does poverty harm a country's economy? (7 points)

Answer 1

The RACES method is a strategy for answering questions or constructing written responses. It stands for Restate, Answer, Cite evidence, Explain, and Summarize.

Restate: Poverty harms a country's economy by causing various negative effects.

Answer: Poverty adversely impacts a country's economy in multiple ways.

Cite evidence: For instance, the lack of financial resources among the poor population limits their purchasing power. This, in turn, reduces the demand for goods and services, leading to a decrease in production and sales. Additionally, poverty often results in lower levels of education and skills, hindering economic growth and development. Furthermore, the inability of impoverished individuals to access quality healthcare may lead to increased healthcare costs for the country.

Explain: These economic consequences of poverty create a cycle of disadvantage, making it difficult for countries to escape the poverty trap. With reduced spending power, businesses suffer, which results in job losses and further income inequality. The lack of education and skills prevents individuals from obtaining higher-paying jobs, perpetuating the cycle of poverty. Moreover, the increased healthcare costs strain the government's finances, potentially limiting funds available for infrastructure development and other essential services.

Summarize: In summary, poverty harms a country's economy by reducing purchasing power, limiting education and skills, and increasing healthcare costs. These negative repercussions contribute to a cycle of disadvantage and hinder overall economic growth and development.