In relation to measuring global wealth and poverty, distinguish among absolute, relative, and subjective poverty

Question

What will be an ideal response?

Answer 1

According to social scientists, defining poverty involves more than comparisons of personal or household income; it also involves social judgments made by researchers.

From this point of view, absolute poverty—previously defined as a condition in which people do not have the means to secure the most basic necessities of life—would be measured by comparing personal or household income or expenses with the cost of buying a given quantity of goods and services. The World Bank has defined absolute poverty as living on less than a dollar a day. Similarly, relative poverty—which exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living—would be measured by comparing one person's income with the incomes of others. Finally, subjective poverty would be measured by comparing the actual income against the income earner's expectations and perceptions. Defining levels of poverty involves several dimensions: (1) how many people are poor, (2) how far below the poverty line people's incomes fall, and (3) how long they have poor (is the poverty temporary or long term?)