Podcast
Questions and Answers
What is the primary distinction between absolute and relative poverty?
What is the primary distinction between absolute and relative poverty?
- Absolute poverty pertains to basic necessities; relative poverty pertains to income levels compared to others. (correct)
- Absolute poverty is defined by a daily income threshold; relative poverty is not quantifiable.
- Absolute poverty applies to individuals only; relative poverty applies to households only.
- Absolute poverty affects developed countries; relative poverty affects developing countries.
Which of the following best exemplifies absolute poverty?
Which of the following best exemplifies absolute poverty?
- A household with an income that is below £1243.20 per month.
- An individual surviving on less than $1.90 a day. (correct)
- A family earning considerably less than the average income of their city.
- A person who cannot afford luxury goods but meets basic needs.
What percentage of the median household income in the UK signifies relative poverty?
What percentage of the median household income in the UK signifies relative poverty?
- 70%
- 40%
- 50%
- 60% (correct)
In which type of country is absolute poverty more commonly found?
In which type of country is absolute poverty more commonly found?
What threshold defined absolute poverty according to the World Bank in 2022?
What threshold defined absolute poverty according to the World Bank in 2022?
Flashcards
Absolute poverty
Absolute poverty
Lacking enough money to meet basic needs like food, shelter, and healthcare.
Relative poverty
Relative poverty
Poverty measured in comparison to others; making less than a certain percentage of median income.
Poverty line (Absolute)
Poverty line (Absolute)
The income level below which individuals are considered absolutely poor. (2022 example: less than $1.90/day)
Poverty line (Relative)
Poverty line (Relative)
Signup and view all the flashcards
Poverty
Poverty
Signup and view all the flashcards
Study Notes
Poverty Definitions
- Poverty is a lack of financial resources to maintain a basic living standard.
- Economists differentiate between absolute and relative poverty.
- Absolute poverty means individuals can't afford basic necessities for a healthy life (shelter, water, nutrition, clothing, healthcare).
- In 2022, the World Bank defined absolute poverty as living on less than $1.90 per day.
- Absolute poverty is more common in developing countries.
- Relative poverty is when household income is below a certain percentage of the median income in the economy.
- Relative poverty is primarily found in developed nations.
- Relative poverty considers income differences among households.
- For example, the UK defines relative poverty as households earning less than 60% of the median household income.
UK Relative Poverty Example (May 2022)
- UK's median monthly household income was £2,072.
- Relative poverty line was set at £1,243.20 per month (60% of £2,072).
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the essential definitions of poverty, highlighting the differences between absolute and relative poverty. You will learn about how these concepts are measured and their relevance in developing and developed countries. The latter part focuses specifically on the UK’s relative poverty example as of May 2022.
