Question

What is the difference between absolute and relative poverty?

• A. Absolute poverty examines poverty of retired individuals, while relative poverty examines poverty of children.
• B. Relative poverty considers poverty as income below a specific amount at a given point in time, while absolute poverty considers poverty by examining income relative to the income of the rest of the population.
  
• C. Absolute poverty considers poverty as income below a specific amount at a given point in time, while relative poverty considers poverty by examining income relative to the income of the rest of the population.
  
• D. Both absolute and relative poverty are identical.

Answer 1

The correct option is C

Absolute poverty considers poverty as income below a specific amount at a given point in time, while relative poverty considers poverty by examining income relative to the income of the rest of the population.

Absolute poverty considers poverty as income below a specific amount at a given point in time, while relative poverty considers poverty by examining income relative to the income of the rest of the population.