Previous Year Question
Which of the following is/are the type/s of poverty?
Absolute poverty
Relative poverty
Subjective poverty
Functional poverty
Choose the correct answer using the code given below:
Only 3 and 4
Only 1, 2 and 3
Only 1 and 2
Only 1 and 4
Correct Answer: B
Detailed Solution
Poverty refers not only to a lack of income but also to inadequate access to basic necessities, resources, and opportunities. In economic and social studies, poverty is classified on different bases. The major concepts include Absolute Poverty, Relative Poverty, and Subjective Poverty.
Statement 1 is correct. Absolute Poverty is a condition in which an individual or household lacks sufficient resources to meet basic necessities such as food, clothing, housing, and other essential needs. It is measured through a Poverty Line based on a minimum acceptable standard of living. International poverty lines established by the World Bank are examples of measures of Absolute Poverty.
Statement 2 is correct. Relative Poverty assesses the economic condition of an individual or group in comparison with the living standards of other individuals or groups in society. It emphasises inequalities in the distribution of income, consumption, and resources. For example, individuals earning below a specified percentage of a country's Median Income may be classified as relatively poor.
Statement 3 is correct. Subjective Poverty is based on an individual's or household's own assessment of their economic condition and ability to meet their needs. It involves collecting information from individuals about income adequacy, financial difficulties, and the minimum acceptable standard of living. This assessment does not depend solely on objective income or consumption expenditure data.
Statement 4 is incorrect. Functional Poverty is not part of the standard classification of poverty used in this question. Absolute, Relative, and Subjective Poverty are established concepts in economics and social sciences. The causes of poverty or its social functions may be studied through a Functional Approach, but this does not make Functional Poverty a separate standard type.
In poverty measurement, a distinction is also made between Objective and Subjective approaches. Objective assessment uses indicators relating to income, consumption, resources, and living standards, whereas Subjective assessment gives importance to people's responses regarding their own economic condition.