4.2.1 - Absolute and relative poverty

Question 1

What is absolute poverty ?

Answer 1

When an individual can not afford they basic necessities - e.g water and food.

In 2024 the world banks determined that the poverty line was $2.15 per day

Question 2

What is relative poverty ?

Answer 2

The term that refers to when an individual has a lower income in comparison to other incomes in their country.

In the UK, relative poverty is defined as earning less than 60% of UK average income.

Question 3

How do we measure if someone is in absolute poverty ?

Answer 3

The poverty line (less than $2.15) per day

Question 4

How do we measure if someone is living in relative poverty ?

Answer 4

By comparing their income to the average income in the country.
- In the UK if someone is earning less than 60% of the average income they are consider to be living in relative poverty.

Question 5

How has poverty changed over the years.

Answer 5

It has decreased significantly.
- In 1990 : 1.9bn people were living in absolute poverty.
- In 2024 — 8.5 percent of the global population – almost 700 million people – live today on less than $2.15 per day

Question 6

What are the Factors affecting poverty

Answer 6

• Economic growth : Creates jobs, people will have incomes. - reduced absolute poverty. Wage differential may lead to relative poverty though.
• Giverment benefits : Helps to provide people with money to support them having acess to basic necessities.
• Prigressuve Taxes income system help to reduce relative poverty and fund benefits which may help to reduce absolute poverty .
• National minimum wage : Helps to reduce absolute poverty as it help to ensures that people are earning above the poverty line and can afford basic necessities

Education
Healthcare
National debt
Gender inequality
War
Division in a country