Question

5 difference between absolute and relative poverty

Answer 1

Answer:

The difference between absolute and relative poverty can be drawn clearly on the below-given grounds:

Explanation:

1. Absolute poverty is one in which the income of the family or household is below the defined level, and so they cannot afford basic subsistence. On the other hand, relative poverty refers to the person’s way of life, which is comparatively below than the minimum acceptable standard of living in the society or region.
2. Absolute poverty represents poverty with respect to the minimum level of income needed to meet the basic needs. Conversely, relative poverty indicates the economic status of a person in comparison to others in society.
3. Absolute poverty remains consistent over time. As against, relative poverty, changes over time, with the increase in income and standard of living.
4. Absolute poverty can be measured with the help of the poverty line. In contrast, relative poverty can be measured through the Gini Coefficient and Lorenz Curve.
5. Eradication of relative poverty is possible, but it is not in the case of absolute poverty.
6. Absolute poverty is a common issue in developing countries. As opposed to relative poverty, is mainly found in a developed country.

Answer 2

Answer:

Absolute Poverty

• Absolute Poverty refers to a phenomenon in which a section of the society is unable to fulfil even its basic necessities of life concerning food, clothing, housing, education and health.

• It is caused because of many factors like over population, low economic growth, over dependence on agriculture, etc.

• There are remedies to remove absolute poverty by Poverty Alleviation Programme and other ways.

• It is measured by 'Poverty Line.'
• Quality of life is poor .

Relative Poverty

• Relative Poverty refers to a phenomenon in which inequalities of income exist and hence one person is poor in relation to other person.

• It is caused because of inequalities of income.

• It can't be removed as people have different skills and accordingly their incomes vary.

• It is measured by 'Gini Co- efficient.'
• Quality of life is marginally better as those living under relative poverty have access to health care services.