Question

What is difference between Absolute Poverty and Relative Poverty?

Answer 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.

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.'

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.'