Question
What is the difference between relative and absolute poverty? Which measure is generally used to determine these types of poverty?

Answer

Absolute poverty/ relative poverty:
S.No.
Basis
Absolute Poverty
Relative Poverty
1.
Meaning
It refers to a phenomenon in which a section of the society is unable to fulfill even its basic necessities of life concerning food, clothing, housing, education and health.
It refers to a phenomenon in which inequalities of income exist and hence one person is poor in relation to other person.
2.
Couse
Many causes like: over population, low economic growth, over dependence on agriculture etc.
Inequalities of income
3.
Remedy
There are remedies to remove absolute Poverty by PAPs and other ways.
It can not be removed as people have different skills and accordingly their incomes vary.
4.
Measurement
It is measured by Poverty Line.
It is measured by Gini Co-efficient.

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