Question

Identify the correct classifications of poverty as discussed in economics.

1. Absolute Poverty
2. Seasonal Poverty
3. Relative Poverty
4. Situational Poverty

• A. All
• B. i, iii
• C. iii only
• D. None of these

Answer 1

Answer:

B. i, iii

• Economic theory commonly categorizes poverty into 'Absolute Poverty' and 'Relative Poverty'.

• Absolute poverty refers to a severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information, usually defined by a fixed income threshold.

• Relative poverty, on the other hand, describes a condition where people lack the minimum amount of income needed to maintain the average standard of living in the society in which they live, often measured against the median income.