Question

Write a short note on poverty. write the difference between relative and absolute poverty

Answer 1

 person is considered poor if the income or consumption level of a person falls below a given minimum level necessary to fulfil basic needs. Basic needs are different at different countries and different time. That is why, poverty line may vary with time and place. Each country uses an imaginary line that is considered appropriate for its existing level of development and its accepted minimum social norms. Thus, it can be concluded that poverty line may vary with time and place. Absolute poverty – is a condition where household income is below a necessary level to maintain basic living standards (food, shelter, housing). This condition makes it possible to compare between different countries and also over time.Relative poverty – A condition where household income is a certain percentage below median incomes. For example, the threshold for relative poverty could be set at 50% of median incomes (or 60%)

Answer 2

Answer:

Poverty is the inability to secure the minimum consumption requirements for life like food, clothing, shelter, education, health facilities etc.

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.'