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: -Absolute poverty refers to when a person or household does not have the minimum amount of income needed to meet the minimum living requirements needed over an extended period of time. In other words, they cannot meet their basic needs.

Detailed explanation-3: -Absolute poverty (also called extreme poverty) is the lack of sufficient resources to secure basic life necessities, including amongst others safe drinking water, food, or sanitation.

Detailed explanation-4: -“Absolute poverty is a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to social services.”

Detailed explanation-5: -Absolute poverty compares households based on a set income level. And this level varies from country to country depending on its overall economic conditions. Relative poverty is when households receive 50% less than average household incomes.