Question

Which concept of poverty helps to assess the level of inequality in the country?

Options

• Relative concept of poverty helps to assess the level of inequality in the country.

• As per this concept, a comparison between the income level of top 5-10% with the bottom 5-10% is made, which reflects the relative standard of poverty.

• This concept of poverty indicates the relative position of difference. segments of the population in the income hierarchy.

• All of the above

Answer 1

All of the above

Explanation:

The relative concept of poverty aids in determining the country's level of inequality. According to this concept, the relative standard of poverty is determined by comparing the income levels of the top 5-10 percent with the bottom 5 -10 percent. The relative status of different sectors of the population in the income hierarchy is indicated by this idea of poverty. Relative poverty occurs when households earn 50% less than the national average, meaning they have some money but not enough to afford anything beyond the necessities.