Question

Identify whether each of the following proposed poverty measures is an absolute or relative measure of poverty, and discuss whether poverty could ever be eliminated if that measure were utilized.

a. An inflation-adjusted annual income of \(25,000 for an urban family of four

b. Individuals with annual incomes among the lowest 15 percent

c. An inflation-adjusted annual income of \) 10,000 per person

Short answer

a. absolute poverty

b. relative poverty

c. absolute poverty

Step-by-step solution

Given Information

Absolute Poverty alludes to a condition where the family income is under a fundamental level to keep up with essential expectations for everyday comforts.

Relative Poverty alludes to a condition where the family income is a sure rate beneath the middle

Explanation Part (a)

An inflation-adjusted yearly income of $\$25000$for a metropolitan group of four: This is an instance of Absolute Poverty. On the off chance that the appropriate measures are taken to further develop development and advancement, the income of people would rise in like manner. Then, at that point, we can say that outright destitution is disposed of.

Explanation Part (b)

Individuals with yearly incomes are among the most reduced $15\%$: This is the situation of relative poverty. Assuming appropriate moves are initiated to work on the income of the relative multitude of people who has a place with the gathering of least$15\%$, then we can say that the neediness has been disposed of.

Explanation Part (c)

An inflation-adjusted yearly income of $\$10000$per individual: This is once more, an instance of Absolute Poverty. Assuming the arrangements of development and improvement would have the option to raise the income above$\$10000$then we can say that the destitution has been diminished.