ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Absolute Poverty is used to describe a condition where an individual does not have the financial means to obtain commodities to sustain life. Relative Poverty refers to the standard of living compared to economic standards of living within the same surroundings.

Detailed explanation-2: -Relative poverty is the level of poverty that changes based on context– it is relative to the economic climate. Relative Poverty is when a household receives 60% of the average household income in their own economy. They do have some money, however, not enough to afford anything above the basics.

Detailed explanation-3: -Primary and secondary poverty Primary poverty is defined as a situation where income is insufficient to meet basic needs – even if every penny is spent wisely. Secondary poverty is defined as a situation where money is misspent on luxuries – leaving insufficient disposable income to buy necessities.

Detailed explanation-4: -According to the methodology authorized by the Union Cabinet, the BPL income limit in India is around Rs. 27, 000 per year. A benchmark known by the Indian government as “below the poverty line” is used to reflect economic losses and to identify people and households in need of support and assistance.