Question

Differentiate between absolute and relative poverty ? With points

Answer 1

Absolute poverty:

When a household does not have sufficient income to sustain even a basic acceptable standard of living / meet basic needsAbsolute poverty thresholds will vary between developed and developing countriesThe extreme poverty measure now used by the World Bank is the percentage of the population living on less than $1.90 a day (PPP)

Relative poverty
A level of household income that is considerably lower than the median level of income within a countryThe official UK relative poverty line is household disposable income (adjusted for household size) of less than 60% of median income