Define official poverty line, and differentiate between absolute poverty and relative poverty

Question

What will be an ideal response?

Answer 1

The U.S. Social Security Administration has established an official poverty line, which
is based on what the federal government considers to be the minimum amount of
money required for living at a subsistence level. The poverty line is computed by
determining the cost of a minimally nutritious diet (a low-cost food budget on which a
family could survive nutritionally on a short-term, emergency basis) and multiplying
this figure by three to allow for nonfood costs. Absolute poverty exists when people
do not have the means to secure the most basic necessities of life. Absolute poverty
often has life-threatening consequences, such as when a homeless person freezes to
death on a park bench. By comparison, relative poverty exists when people may be
able to afford basic necessities but are still unable to maintain an average standard of
living.