Identify the 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, based

on 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 3 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.