4.2.1 Absolute and relative poverty

• Absolute Poverty refers to the condition where individuals lack the basic necessities required for survival
• The income threshold for absolute poverty is determined by overall societal living standards.

  False
• The standard for measuring absolute poverty is applicable across different regions
• Match the cause of absolute poverty with its description:

  Unemployment ↔️ High rates reduce income opportunities

  Lack of Education ↔️ Limits skills and job prospects

  Inadequate Social Safety Nets ↔️ Vulnerable populations lack support
• Poor nutrition and healthcare access are consequences of absolute poverty.
• Examples of populations in absolute poverty include sub-Saharan Africa or refugee camps.
• Match the characteristic of relative poverty with its description:

  Context-Dependent ↔️ Varies according to societal standards

  Income Threshold ↔️ Defined as a percentage of median income

  Focus on Inequality ↔️ Highlights disparities in income distribution
• Income inequality is a primary cause of relative poverty.
• Consequences of relative poverty include reduced opportunities in education, healthcare, and employment.
• Order the key differences between absolute and relative poverty:

  1️⃣ Definition: Basic necessities vs. below median income

  2️⃣ Measurement: Fixed threshold vs. income percentage

  3️⃣ Context: Universal vs. Societal

  4️⃣ Focus: Survival vs. Income inequality
• Match the cause of absolute poverty with its consequence:

  Unemployment ↔️ Reduced income opportunities

  Lack of Education ↔️ Limited job prospects

  Geographic Barriers ↔️ Restricted access to resources
• Which region is mentioned as an example of absolute poverty due to unemployment and limited education access?

  Sub-Saharan Africa
• Absolute poverty is caused by a lack of education
• Limited access to healthcare is a cause of absolute poverty.
• What income threshold defines absolute poverty?

  Fixed income threshold
• Order the key features in a comparison between absolute and relative poverty:

  1️⃣ Definition

  2️⃣ Measurement

  3️⃣ Context

  4️⃣ Focus
• What is the defining characteristic of relative poverty?

  Living below median income
• Relative poverty is context-dependent and varies according to societal norms
• Income inequality is a cause of relative poverty.
• What does the Gini coefficient measure?

  Income inequality
• The Gini coefficient is calculated using the area between the Lorenz curve and the line of perfect equality
• Social stratification can perpetuate relative poverty.
• The Gini coefficient is a measure of income inequality
• What does $A$ represent in the Gini coefficient formula?


  Area between the Lorenz curve and the line of perfect equality
• Education and skills disparities contribute to income inequality and relative poverty.
• What is social stratification in the context of relative poverty?

  Limiting access to resources based on social class
• Absolute poverty is defined by a fixed income threshold
• What is a key characteristic of absolute poverty?

  Universal across regions
• Relative poverty is defined as living below a specific percentage of the median income.
• Relative poverty is measured using a percentage of the median income
• How does absolute poverty differ from relative poverty in its focus?

  Survival vs. income inequality
• Absolute poverty in sub-Saharan Africa is often caused by lack of food and clean water.
• Unemployment is a primary cause of absolute poverty
• What role do social safety nets play in addressing absolute poverty?

  Provide support to vulnerable populations
• The Gini coefficient measures income inequality using the area between the Lorenz curve and the line of perfect equality.
• Malnutrition and limited healthcare access are consequences of absolute poverty
• What is a psychological consequence of relative poverty?

  Psychological distress
• The consequences of relative poverty are multifaceted and impact various aspects of an individual's life
• Social exclusion is a key consequence of relative poverty.
• What are the reduced opportunities associated with relative poverty?

  Education, healthcare, employment