Definition Of Absolute And Relative Poverty
Economics notes
Definition Of Absolute And Relative Poverty
➡️ Absolute poverty is a measure of poverty that is based on a fixed standard of living, such as a certain income level or access to basic needs like food, shelter, and clothing. It is a measure of poverty that does not take into account the cost of living in a particular area.
➡️ Relative poverty is a measure of poverty that is based on the comparison of one's income or resources to those of others in the same society. It is a measure of poverty that takes into account the cost of living in a particular area.
➡️ Both absolute and relative poverty are important measures of poverty, as they provide different perspectives on the economic well-being of individuals and communities. Absolute poverty is a measure of poverty that is more focused on the basic needs of individuals, while relative poverty is a measure of poverty that is more focused on the comparison of one's resources to those of others.
What is the difference between absolute and relative poverty?
Absolute poverty refers to a situation where individuals or households lack the basic necessities of life, such as food, shelter, and clothing. Relative poverty, on the other hand, refers to a situation where individuals or households have a lower standard of living compared to the average in their society.
How does poverty affect economic growth?
Poverty can have a negative impact on economic growth as it can lead to lower levels of productivity, reduced human capital development, and limited access to credit and financial services. Additionally, poverty can lead to social unrest and political instability, which can further hinder economic growth.
What are some policies that can be implemented to reduce poverty?
Some policies that can be implemented to reduce poverty include increasing access to education and training, providing social safety nets such as cash transfers and food subsidies, promoting job creation and entrepreneurship, and investing in infrastructure development. Additionally, policies that address income inequality and promote inclusive growth can also help to reduce poverty.