Distinction Between Absolute Poverty And Relative Poverty
Economics notes
Distinction Between Absolute Poverty And Relative Poverty
➡️ Equity refers to the fairness of the distribution of resources and benefits, while efficiency is the ability to produce the desired output with the least amount of input.
➡️ Equity focuses on the fairness of the outcomes, while efficiency focuses on the effectiveness of the process.
➡️ Equity is concerned with the fairness of the distribution of resources and benefits, while efficiency is concerned with the effectiveness of the process in producing the desired output.
What is the difference between absolute poverty and relative poverty?
Absolute poverty refers to a situation where an individual or household lacks the basic necessities of life, such as food, shelter, and clothing. Relative poverty, on the other hand, refers to a situation where an individual or household has a lower standard of living compared to the average in their society.
Which type of poverty is more prevalent in developed countries?
Relative poverty is more prevalent in developed countries, where the standard of living is generally higher. In these countries, individuals and households may have access to basic necessities, but they may still struggle to meet the expectations of their society in terms of material possessions and lifestyle.
How does the distinction between absolute and relative poverty impact policy decisions?
The distinction between absolute and relative poverty is important in shaping policy decisions. Policies aimed at addressing absolute poverty focus on providing basic necessities to those in need, such as food aid and housing assistance. Policies aimed at addressing relative poverty focus on reducing income inequality and improving access to education and job opportunities. Understanding the difference between these two types of poverty can help policymakers design more effective interventions to address poverty in all its forms.