A person living in absolute poverty cannot obtain essential basic needs such as clothes, food, and shelter. The individual is not able to sustain their life with financial means due to low income or other issues. Consequently, absolute poverty is measured using a poverty line.
For relative poverty, a person’s standard of living is related to others in the same area and those in a similar position. The biological requirements of the individual are not taken into account. Therefore, someone who can cater to their basic needs can be considered poor. Relative poverty is measured using the Lorenzo Curve and the Gini-Coefficient.
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