Nature of Poverty.

1.	Nature of Poverty.
Answer» 1. Absolute Poverty: The minimum expenditure or income required to satisfy the minimum basic needs and services is known as poverty line. The population having income or expenditure below this poverty line Eire said to be absolutely poor. Absolute poverty is also known as complete poverty. 2. Relative Poverty: In the concept of relative poverty, income inequality existing in different groups of people living in society is considered. Therefore lower income class is considered poor than the higher income class. For example, a person earning ₹ 3 lakhs per year is poor relatively to the person earning ₹ 4 lakhs per year. But the same person is not poor relative to the other person who is earning ₹ 2.50 lakhs per year. Poverty Line: Poverty line is an arbitrary line denoting the minimum income or expenditure required to satisfy primary necessities of life. Those living blow the line are called poor, and those living above the line are not poor.

Answer»

1. Absolute Poverty:

The minimum expenditure or income required to satisfy the minimum basic needs and services is known as poverty line. The population having income or expenditure below this poverty line Eire said to be absolutely poor.
Absolute poverty is also known as complete poverty.

2. Relative Poverty:

In the concept of relative poverty, income inequality existing in different groups of people living in society is considered. Therefore lower income class is considered poor than the higher income class. For example, a person earning ₹ 3 lakhs per year is poor relatively to the person earning ₹ 4 lakhs per year. But the same person is not poor relative to the other person who is earning ₹ 2.50 lakhs per year.
Poverty Line: Poverty line is an arbitrary line denoting the minimum income or expenditure required to satisfy primary necessities of life. Those living blow the line are called poor, and those living above the line are not poor.

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