absolute and relative poverty 4.2.1

Question 1

Absolute poverty

Answer 1

-Measure of poverty that focuses on a fixed, minimum standard of living necessary for basic survival
-Expressed in terms of income and consumption below a certain threshold

Threshold:
-Specific threshold set as income required to meet basic such as food, shelter, clothes

Focus:
-Meeting basic human needs and ensuring a minimum standard of living

Applicability:
-Commonly used in international comparisons - assessing basic needs in developing countries

Policy implications:

Question 2

Relative poverty

Answer 2

-A measure that considers a persons income or resources in comparison to the overall standard of living within their society
-Concerned with inequality and social exclusion