Relative poverty is :

Question

Accepted Answer

The correct option is 2: Disparity between different income classes.

Relative poverty is a conceptual measure of poverty that defines a person or household as poor if they fall below a certain income level relative to the rest of the society in which they live. It is essentially an expression of inequality. It focuses on the lack of resources needed to maintain the average standard of living enjoyed by the society. For instance, in a developed country, a family might be considered relatively poor if they cannot afford a car or a computer, even if they have enough food and basic shelter. Therefore, relative poverty is inherently about comparing or contrasting the economic status of one group with that of another, making it a measure of income disparity within a nation.

The incorrect option is 1: Minimum calory requirement. This criterion is central to defining absolute poverty. Absolute poverty measures whether an individual has enough resources to meet basic biological needs, such as a minimum calorie intake for sustenance, regardless of the wealth of the rest of society.

The incorrect option is 3: Per capita daily consumption expenditure. This metric is a common measure used to define the official poverty line (often absolute poverty) in countries like India, where poverty is defined based on a necessary level of spending to purchase a required basket of goods, including the minimum calorie requirement. It is a quantitative measure of absolute poverty, not relative disparity.

The incorrect option is 4: Below poverty line status. Being "below the poverty line" typically refers to the status of being absolutely poor, as the official poverty line (in many countries, including developing ones) is traditionally established based on a minimum threshold for subsistence (food, shelter, clothing). This is a static, absolute measure, while relative poverty is a dynamic, comparative measure.