Explain Relative and Absolute Poverty.

Relative poverty refers to a condition where individuals or families lack the resources needed to meet the average standard of living in their society. It is measured in comparison to the living standards and incomes of others within the same society. People experiencing relative poverty may have access to basic necessities but struggle to afford goods and services considered typical or essential in their community.

Absolute poverty, on the other hand, refers to a severe deprivation of basic human needs, including food, clean water, shelter, sanitation, healthcare, and education. It is measured based on a universal standard of poverty and is often defined by an income threshold below which individuals cannot meet their basic needs. Absolute poverty is more about survival and is typically assessed in relation to an international poverty line, such as earning less than $1.90 per day (as defined by the World Bank). Unlike relative poverty, absolute poverty focuses on the fundamental lack of essential resources rather than social comparisons within a specific society.