Question

In: Economics

Use the concept of poverty line to distinguish between persons who are absolutely poor and persons...

Use the concept of poverty line to distinguish between persons who are absolutely poor and persons who are relatively poor

Solutions

Expert Solution

The absolute poverty is the measure of a global povery level, irrespective of geographical regions. It depicts the minimum level of income, below which there exists threats to survival. The relative poverty, however, measure of poverty levels with respect to the geographical regions, and deptics the minimum level of income, below which the people are left behind of economic growth, prosperity, and are considered outside of the society. Relative poverty may or may not be a threat to survival, as it depends on the income levels of the region, usually a country.

The absolute poverty line would be the same/constant over time, adjusting for PPP/inflation. It doesn't change even if the income levels of an area or of the whole globe rises, as the measure of critical needs to survival are more or less equal throughout the globe. On the other hand, relative poverty line is setted as a critical minimum percentage of the income levels in the regions, usually countries. In that sense, whereas absolute income doesn't change over time and space, the relative povery changes in both terms. If income of a nation rises, the relative povery line rises with it. Hence, the person who are absolutely poor, they might be seen as almost the same condition throughout the globe, struggling for survival. But, person who are relatively poor, differes from places to places, who may or may not strive for survival, but are surely an outcast of society, along with its growth and priviledges (health, education, law and justice, etc).


Related Solutions

Describe the difference between individual/household poverty and neighborhood poverty. How does being poor in a poor...
Describe the difference between individual/household poverty and neighborhood poverty. How does being poor in a poor neighborhood increase the impact of economic disadvantage?
Distinguish between the accounting concept and economic concept of income measurement.Distinguish between the accounting concept and...
Distinguish between the accounting concept and economic concept of income measurement.Distinguish between the accounting concept and economic concept of income measurement.
How do you distinguish between concept of D and S functions in Microeconomics and the concept...
How do you distinguish between concept of D and S functions in Microeconomics and the concept of AD and AS functions in Macroeconomics. Why they are different?
Distinguish between relative and absolute poverty and discuss the distribution of each throughout the world.  What is...
Distinguish between relative and absolute poverty and discuss the distribution of each throughout the world.  What is the impact on women and children?
Describe lifestyles of poverty among many poor elderly, including the urban homeless, those who live in...
Describe lifestyles of poverty among many poor elderly, including the urban homeless, those who live in single-room occupancy hotels (SROs), and the poor rural elderly and how the attitudes of the poor rural elderly differ from those of the poor urban elderly.
Assume that the poverty line is given as $2 a day. Use the information in Table...
Assume that the poverty line is given as $2 a day. Use the information in Table 1 below to answer the following questions. Table 1: Income Distribution in three countries Individual Country A Country B Country C 1 1.90 1.90 4.75 2 3.50 1.10 6.50 3 1.50 2.15 1.20 4 1.90 11.0 4.20 5 4.00 1.20 0.10 6 1.80 1.65 0.20 7 3.20 0.40 2.20 8 0.80 3.89 2.50 9 2.01 1.50 2.50 10 1.90 1.10 1.00 11 1.45 1.80...
Define/distinguish the difference between the concepts of absolute/official and relative poverty. Provide and discuss an example...
Define/distinguish the difference between the concepts of absolute/official and relative poverty. Provide and discuss an example of each concept.
Explain the concept of the yield curve for bonds and distinguish between the expectations theory and...
Explain the concept of the yield curve for bonds and distinguish between the expectations theory and market segmentation theory of the term structure of interest rates.                                                        Discuss the role of Credit Default Swaps (CDS) in transferring the default risk on corporate bonds, in the context of Global Financial Crisis 2008.
a) Explain the concept of time value of money b) Distinguish between risk and uncertainty in...
a) Explain the concept of time value of money b) Distinguish between risk and uncertainty in the context of finance c) Discuss the objective of working capital management d) Distinguish between overtrading and overcapiatlisation e) Distinguish between interest rate risk and currency risk
Define geology. Distinguish between the different types of rocks What is the concept of tectonic plates?...
Define geology. Distinguish between the different types of rocks What is the concept of tectonic plates? What is continental drift? What si crude oil? Define the process of refining. Define and give two examples of a solar thermal syatem.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT