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Economics notes


Poverty refers to a state of deprivation characterized by a lack of access to basic necessities, such as food, shelter, healthcare, and education. It is a multidimensional issue influenced by various factors, including low income, limited access to resources, social exclusion, and structural inequalities. Poverty is measured using indicators such as the poverty line, which defines a minimum income threshold below which individuals or households are considered to be in poverty. Understanding poverty helps policymakers, businesses, and individuals identify vulnerable groups, design targeted interventions, and develop strategies to alleviate poverty and promote social welfare.

What is the definition of absolute and relative poverty?

Absolute poverty refers to a condition where individuals lack the basic necessities to meet their needs, while relative poverty is a measure of poverty relative to the average income or living standards in a society.

What are the causes of poverty?

Causes of poverty can include lack of education, limited access to resources and opportunities, unemployment, discrimination, social factors, and systemic inequality.

How do social welfare programs address poverty?

Social welfare programs address poverty by providing financial assistance, healthcare services, education and training opportunities, housing support, and other forms of social support to individuals and families in need.

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