Question

Explain the term 'poverty' and bring out its estimation method.

20 Sep 2025
Answer :
Word Count : 509
Poverty is a multifaceted concept that generally refers to the state in which individuals or groups are unable to meet their basic needs for a minimum standard of living. These basic needs typically include food, clothing, shelter, education, and access to healthcare. Poverty is not merely a lack of income; it also encompasses the inability to participate effectively in society, lack of access to essential services, vulnerability to economic shocks, and social exclusion. Economists, policymakers, and social administrators often distinguish between absolute poverty and relative poverty. Absolute poverty refers to a condition where a person cannot afford the minimum necessities for survival, while relative poverty indicates economic disparity, where individuals earn significantly less than the average income in their society, limiting their standard of living and opportunities. Understanding poverty is critical for designing effective social policies and interventions that aim to improve the welfare and social inclusion of disadvantaged populations. Estimating poverty requires quantitative and qualitative approaches that capture both income levels and overall living conditions. The most common method of poverty estimation is the income or consumption-based approach, which measures whether a household’s income or consumption expenditure
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