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Question : Statement 1: Absolute poverty is determined by comparing the income of individuals with the average income in society.

Statement 2: Relative poverty refers to a specific income threshold below which individuals are considered poor.

Option 1: Statement 1 is true, and Statement 2 is true.

Option 2: Statement 1 is true, but Statement 2 is false.

Option 3: Statement 1 is false, but Statement 2 is true.

Option 4: Statement 1 is false, and Statement 2 is false.


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Statement 1 is false, but Statement 2 is true.


Solution : The correct answer is (c) Statement 1 is false, but Statement 2 is true.

Statement 1 is false. Absolute poverty is typically measured by comparing an individual's income or consumption level with a fixed poverty line or threshold, which is determined based on the basic necessities required for survival. It does not necessarily involve comparing it to the average income in society.

Statement 2 is true. Relative poverty is often defined as a condition in which individuals or households have income or resources below a certain threshold relative to the overall distribution of income or wealth in society. The threshold is usually set as a percentage of the median or mean income in a particular society or country.

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