A situation in which people have an income level that is not sufficient to meet even the minimum consumption expenditure required for basic survival is described as which type of poverty?

Difficulty: Easy

Correct Answer: Absolute poverty

Explanation:


Introduction / Context:
Poverty can be understood and measured in different ways. Two commonly discussed concepts are absolute poverty and relative poverty. Absolute poverty refers to a situation where people do not have enough income or resources to secure even the basic necessities of life, such as adequate food, clothing and shelter. Relative poverty, on the other hand, compares a person's income to the average income in society. This question tests whether you can distinguish between these concepts and correctly identify the term used when income is insufficient to meet a minimum consumption standard.



Given Data / Assumptions:

  • The key description is that income is not sufficient to meet minimum consumption expenditure.
  • The focus is on basic survival needs, not on comparison with the average income of others.
  • The options include both absolute and relative poverty, as well as urban and rural poverty.
  • The question does not specify location, only adequacy of income versus minimum needs.


Concept / Approach:
Absolute poverty is defined with reference to a fixed minimum standard of living, often represented by a poverty line expressed in terms of required calories, basic consumption basket or a minimum income. If a household cannot reach this minimum, it is considered absolutely poor. This concept is widely used by international bodies to measure extreme poverty across countries. Relative poverty, in contrast, is based on inequality and compares income levels to a median or average. Urban and rural poverty simply refer to where poor people live, not to the conceptual threshold itself. Therefore, when the question says income is not sufficient for minimum consumption, it is clearly pointing to absolute poverty.



Step-by-Step Solution:
Step 1: Identify that the key phrase is minimum consumption expenditure required for basic survival.Step 2: Recall that absolute poverty is defined by failure to reach a fixed minimum standard of living.Step 3: Note that relative poverty deals with comparison to average income, not minimum survival needs.Step 4: Choose absolute poverty as the correct term for the situation described.


Verification / Alternative check:
To verify, you can think of common usage by organisations like the World Bank, which defines extreme poverty using a fixed income threshold adjusted for purchasing power. People below that line are considered to be in absolute poverty because they cannot afford basic necessities. In official Indian statistics, the poverty line is similarly defined in terms of a minimum consumption basket. Both examples show that when we talk about minimum needs independent of what others earn, we are dealing with absolute poverty.



Why Other Options Are Wrong:
Option B, relative poverty, is wrong because it is concerned with income distribution and inequality, focusing on how far people are below the average or median income, rather than minimum subsistence. Option C, urban poverty, merely indicates that poor people live in urban areas and does not define the type of poverty conceptually. Option D, rural poverty, similarly indicates location, not the conceptual threshold. The description given in the question fits absolute poverty, not these other categories.



Common Pitfalls:
Students may confuse absolute and relative poverty because both involve the idea of low income. Another common mistake is to focus on the words urban or rural and assume that any general poverty question must be about location, even when the statement is clearly conceptual. To avoid these errors, remember that absolute and relative describe the basis of measurement, whereas urban and rural describe the geographical setting. When the question mentions minimum consumption needs, it is a strong indicator of absolute poverty.



Final Answer:
The described situation is called absolute poverty.

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