Question

Differentiate between absolute poverty and relative poverty.

Answer 1

Absolute poverty	Relative poverty
1. The condition in which people are unable to earn the minimum amount of income to do expenditure that is needed to satisfy the basic needs of human beings is known as absolute poverty.	1. The condition in which people are unable to earn the minimum amount of income needed in order to maintain the average standard of living in the society in which they live is called relative poverty.
2. The concept of absolute poverty focuses on the minimum consumption expenditure required for satisfying minimum needs.	2. The concept of relative poverty focuses on income inequality existing in different groups of people living in society.
3. Unlike relative poverty, the population need not be divided in different groups to study absolute poverty.	3. To assess relative poverty, the society is divided in different income groups to study the unequal distribution of income.