Because some people are poor and cannot afford to move and they also have jobs as fisherman so they have to live very near the coast(which are popular earthquake zones).
River valleys often follow major earthquake faults, and they're open attractive places to live when there's not a quake. Likewise, areas around volcanos are quite fertile and have attracted people since farming began, especially if they generate reliable snow-melt. There's lots of reasons why people live where they live. Not just one. Compromises everywhere.
Land is cheaper in earthquake zones
Because their homes and work spaces both are established there.
No money to move
It was asked in an igcse exam and it was worth 7 marks...I honestly don't think that much info would be enough to fetch you 7 marks =P
Earthquakes normally happen in rich countries, and the people living in those countries think they are absoulotely safe; but actaully they aren't. Thats one reason. Another reason could be because they have got an excellent job in that particular country wich is really unlucky. :P
I honestly think they can't afford . They might have grown up there as a chid , they friends and family might live there. By the way I havent used this sight before lol xxxxxxxxxx