Which concept uses a fixed income threshold to determine poverty status regardless of the society's overall wealth?

Which concept uses a fixed income threshold to determine poverty status regardless of the society's overall wealth?

• A. Relative poverty
• B. Cycle of poverty
• C. Absolute poverty
• D. Poverty line

Answer: (C)

Absolute poverty is about a fixed minimum standard that doesn’t change with how wealthy a country is. It uses a specific income threshold to decide who lacks basic needs like enough food, shelter, or healthcare. If someone’s income falls below that fixed line, they’re considered poor no matter whether the society as a whole is rich or poor. This contrasts with relative poverty, which measures poverty in relation to the country’s overall wealth and can shift as society gets richer or poorer. The term poverty line refers to that numerical cutoff used to mark the boundary, serving as the practical threshold for absolute poverty. For example, an international poverty line like $1.90 a day stays the same across countries, highlighting the idea that the standard is fixed and universal.

Absolute poverty is about a fixed minimum standard that doesn’t change with how wealthy a country is. It uses a specific income threshold to decide who lacks basic needs like enough food, shelter, or healthcare. If someone’s income falls below that fixed line, they’re considered poor no matter whether the society as a whole is rich or poor. This contrasts with relative poverty, which measures poverty in relation to the country’s overall wealth and can shift as society gets richer or poorer. The term poverty line refers to that numerical cutoff used to mark the boundary, serving as the practical threshold for absolute poverty. For example, an international poverty line like $1.90 a day stays the same across countries, highlighting the idea that the standard is fixed and universal.