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 -
- (a)Only 3 and 4
- (b)Only 1, 2 and 3
- (c)Only 1 and 2
- (d)Only 1 and 4
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.
- (a)Only 3 and 4 — Drops the two most basic types (absolute and relative) and wrongly retains the invented 'functional poverty'.
- (c)Only 1 and 2 — Correct as far as it goes but omits subjective poverty, which is itself a recognised type — so it is incomplete.
- (d)Only 1 and 4 — Pairs a valid type (absolute) with the non-existent 'functional poverty' while leaving out relative and subjective poverty.
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.
The item tests whether a candidate can spot a fabricated category. 'Functional poverty' sounds plausible next to genuine terms, and the trap is to over-include it; the correct move is to keep only the three recognised types.
- Absolute poverty: measured against a fixed minimum — the poverty line / basic-needs basket.
- Relative poverty: measured against society's prevailing standard (e.g., below a fraction of median income).
- Subjective poverty: based on individuals' own perception of whether their income is enough.
- 'Functional poverty' is not a standard economic category of poverty.
Absolute, relative and subjective are standard types (answer = 1, 2, 3); 'functional poverty' is not recognised.
- Treating an official-sounding but invented category ('functional poverty') as real
- Confusing relative poverty with income inequality
UPPSC often uses the 'which of the following is/are types of X' statement-code format and slips in one fabricated item to test precise recall.
No directly related past PYQ was found.
- practice — not a real PYQ
Poverty measured against the prevailing living standard of a society (for example, below a share of median income) is called:
- (a)absolute poverty
- (b)relative poverty
- (c)subjective poverty
- (d)chronic poverty
Answer(b) relative poverty — defined relative to the surrounding society's standard.
- practice — not a real PYQ
In India, the official poverty line (a basic-needs based threshold) is an example of measuring which kind of poverty?
- (a)relative poverty
- (b)subjective poverty
- (c)absolute poverty
- (d)multidimensional poverty only
Answer(c) absolute poverty — it uses a fixed minimum threshold.