| Feature | Absolute Poverty | Relative Poverty |
|---|---|---|
| Basis | Physical survival and basic needs | Comparison with societal averages |
| Nature | Objective and fixed over time | Subjective and changes with society |
| Focus | Biological subsistence | Social participation and inclusion |
| Elimination | Possible through basic resource provision | Difficult as long as inequality exists |
Distinguish Stock and Flow: When asked to define wealth or income, always clarify that wealth is an accumulated asset (stock) while income is a recurring receipt (flow).
Identify the Threshold: Remember the specific '60% of median income' figure for relative poverty questions, as this is the standard benchmark used in many sociological studies and government reports.
Evaluate Definitions: Be prepared to discuss the strengths and weaknesses of absolute vs. relative poverty. For example, absolute poverty is easier to track globally, but relative poverty better captures social exclusion in developed nations.
Check for Multi-dimensionality: Ensure you mention that poverty is not just about money; it includes factors like 'social exclusion' and 'environmental deprivation'.
Inequality vs. Poverty: Students often confuse these two. Inequality refers to the gap between the rich and poor, while poverty refers to the state of being below a specific threshold of need or average living standards.
The 'Survival' Trap: Avoid assuming that poverty only exists if someone is starving. In modern sociology, the 'relative' definition is more common because it accounts for the inability to participate in normal social activities.
Static Wealth: Do not assume wealth is only cash. It includes non-liquid assets like houses and land, which may not be immediately available for spending but still represent significant economic power.
