Which of the following statements best distinguishes absolute poverty from relative poverty?

• A. Absolute poverty has remained stable since the 1950's, whereas relative poverty changes every year.
• B. Relative poverty exists in wealthy nations and absolute poverty only exists in developing nations.
• C. Absolute poverty indicates a lack of resources for basic survival, whereas relative poverty indicates lacking resources compared to others in the society.
• D. Relative poverty refers more to income inequality, whereas absolute poverty is related to structural mobility.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of absolute poverty. Absolute poverty refers to a condition where an individual or group lacks the basic resources necessary for survival, such as food, clean water, shelter, and healthcare. It is measured against a fixed standard or threshold that does not change over time or between societies.
2. Step 2: Understand the concept of relative poverty. Relative poverty is defined in relation to the economic status of other people in the same society. It reflects inequality and social exclusion, where individuals have significantly less income or resources compared to the average or median in their community.
3. Step 3: Compare the two concepts. Absolute poverty is about meeting essential needs for survival, while relative poverty is about how one's resources compare to others in the society, highlighting social disparities rather than survival thresholds.
4. Step 4: Evaluate the given statements based on these definitions. Identify which statement correctly captures the fundamental difference between lacking basic survival resources (absolute poverty) and lacking resources relative to others (relative poverty).
5. Step 5: Conclude that the statement 'Absolute poverty indicates a lack of resources for basic survival, whereas relative poverty indicates lacking resources compared to others in the society' best distinguishes the two concepts.