4.2

Question 1

Absolute poverty

Answer 1

exists when people
lack access to the ‘basic economic needs’

The world bank states that this exists
when earning is below $1.90 per day.

Question 2

Relative poverty

Answer 2

Exist when households earn 60% of median income

Question 3

Secondary poverty

Answer 3

the collection of economic
agents (individuals, families etc) who have the
resources to be out of poverty were it not for
financial mismanagement/poor spending.