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What's the difference between absolute and relative poverty?

Economics Dec 19, 2020

What's the difference between absolute and relative poverty?

Expert Solution

The difference between absolute and relative poverty is that absolute poverty measures how many people cannot provide the basic necessities of life while relative poverty looks at the differences in resources relative to others. Absolute poverty describes people who are starving, have no shelter, and cannot adequately protect themselves against the elements. Relative poverty may be a measure of those within a nation whose income is a certain percentage below the median and may have fewer opportunities or options in life but are able to have basic needs filled by their resources.

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