Definition of Absolute Poverty and Relative Poverty

Question 1

Absolute Poverty

Answer 1

Absolute poverty refers to a condition where individuals or households lack the essential resources and basic necessities required to meet their basic needs and maintain a minimally acceptable standard of living. It is usually measured by the income level or consumption expenditure that falls below a fixed threshold, known as the poverty line. This threshold is typically set at a level that represents the minimum income or expenditure required to afford food, shelter, clothing, healthcare, and education.

Question 2

Relative Poverty

Answer 2

Relative Poverty: Relative poverty, on the other hand, is a measure of poverty that takes into account the economic inequality within a society. It compares the income or resources of individuals or households to the average income or resources of the overall population. In relative poverty, individuals are considered poor if their income or resources fall significantly below the average income or resources of the society in which they live. Unlike absolute poverty, relative poverty is a relative concept and can vary depending on the overall wealth and income distribution in a particular society.

Question 3

What is the International Poverty Line currently?

Answer 3

$2.15