Unit 3.4 · Economics of Inequality and Poverty

Meaning and Measurement of Poverty

AO2

Syllabus Requirement

Absolute vs relative poverty and the use of single (e.g. poverty lines) and composite indicators (e.g. MPI).

Assessment Objectives
AO2Application and Analysis

Summary

Poverty refers to the state where individuals or communities lack sufficient resources to meet basic human needs such as food, shelter, and healthcare. It is important to understand poverty's varying definitions and measurements, as these can differ significantly across different contexts and countries, impacting economic development and efficiency.