Question

Give 3 points of difference between absolute poverty and relative poverty.

Answer 1

Absolute poverty includes the lack of biological necessities, such as food, water, clothing, housing, and sanitation, whereas, relative poverty (or extreme poverty) refers to a poverty line, and is a definition of the amount of income a person needs to satisfy basic needs.

Answer 2

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)