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.
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.
