SSC Economics Sample Paper NCERT Sample Paper-6

  • question_answer
    Absolute Poverty means:

    A)  Poverty in terms of absolute number of people

    B)  Poverty in terms of the basic minimum calorie requirements

    C)  Poverty in terms of the prevailing price level

    D)  Poverty in terms of the absolute level of unemployment

    Correct Answer: B

    Solution :

    [b] Absolute poverty considers the amount of income a person or family needs to purchase an absolute amount of the basic necessities of life. These basic necessities are identified in terms of calories of food, BTUs of energy, square feet of living space, etc. The problem with the absolute poverty level is that there really are no absolutes when it comes to consuming goods. You can consume a given poverty level of calories eating relatively expensive chicken, relatively inexpensive masala dosa, or garbage from a restaurant dumpster. The income needed to acquire each of these calorie "minimums" vary greatly. That's why some prefer relative poverty.

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