Economics Income Inequality Questions
The concept of relative poverty refers to a measure of poverty that is based on a person or household's income or resources in relation to the average income or resources of the overall population. It focuses on the relative deprivation experienced by individuals or households compared to others in society. In this measure, individuals or households are considered to be in relative poverty if their income or resources fall below a certain percentage of the median income or resources in their society. Relative poverty takes into account the societal context and standards of living, recognizing that poverty is not solely determined by an absolute level of income, but also by the distribution of income within a society.