Final answer:
Poverty exists due to a combination of cultural factors, institutional malfunctioning, and unequal distribution of resources, all contributing to the disparities seen both globally and within societies. These factors, often interrelated, perpetuate cycles of poverty that can be challenging to break.
Step-by-step explanation:
Why does poverty exist? The reasons are multifaceted and include cultural factors, institutional malfunctioning, as well as unequal distribution of resources. It is correct to suggest that 'D. All of the above' are contributing factors to the existence of poverty. Culture can influence economic behavior, norms, and values that impact poverty. Institutional malfunctioning, such as corruption or inadequate governance, can limit opportunities and restrict access to services, thereby contributing to poverty. Unequal distribution of resources leads to disparities where some individuals and communities have an abundance of resources while others suffer from scarcity. This inequality is evident in both global comparisons, like the difference in wealth between nations, and within societies, where wealth disparities can cause social unrest and marginalization. At the household level, insufficient current resources can lead to poverty, with long-term solutions requiring improvement in levels of physical and human capital. Intergenerational aspects also play a role, where poverty tends to persist across generations, making it difficult for families to break out of the cycle.