Which of the following is/are the type/s of poverty?
(1) Absolute poverty
(2) Relative poverty
(3) Subjective poverty
(4) Functional poverty
Choose the correct answer using the code given below -

Question

UnlockIAS · Accepted Answer

Correct — B, Only 1, 2 and 3. Development economics conventionally recognises three types of poverty: absolute poverty (inability to meet a fixed minimum of basic needs, measured against a poverty line), relative poverty (falling below the prevailing standard of living of one's own society, e.g., below a share of median income) and subjective poverty (based on people's own perception of whether their income is adequate). 'Functional poverty' (4) is not an established category, so it is excluded — leaving 1, 2 and 3.

Why the other options are wrong — (a) Drops the two most basic types (absolute and relative) and wrongly retains the invented 'functional poverty'.  (c) Correct as far as it goes but omits subjective poverty, which is itself a recognised type — so it is incomplete.  (d) Pairs a valid type (absolute) with the non-existent 'functional poverty' while leaving out relative and subjective poverty.

Concept: Poverty can be measured in more than one way. Absolute poverty uses a fixed subsistence threshold (a basic-needs basket or poverty line); relative poverty is defined against the living standard of the surrounding society; subjective poverty relies on people's self-assessment of adequacy. These three are the standard classifications.

State PCS 2023 Q78 — Economy PYQ with Answer

State PCS 2023 Q78 — Economy PYQ with Answer