A Level Economics AQA Practice Exam

How is relative poverty defined?

1. As having no income at all

2. As lacking minimum income to maintain average living standards

3. As being below the poverty line set by the government

4. As the inability to afford basic necessities

The correct answer is: As lacking minimum income to maintain average living standards

Relative poverty is defined as a condition where individuals or groups lack the minimum income necessary to maintain an average standard of living within a specific society. This concept emphasizes that poverty is not only about absolute income but also about an individual's situation in relation to the wider community. In this context, the measure of relative poverty considers societal norms and standards, meaning that the condition of being considered 'poor' is relative to the average income and lifestyle of others. For instance, a household may have enough income to meet its basic needs, but if that income is significantly lower than the income of most people in society, it may be considered to be in relative poverty. This definition reflects the idea that poverty can have broader social implications beyond mere subsistence, highlighting issues of inequality and social exclusion. By focusing on income in relation to societal averages, we are able to analyze not only economic disparities but also the potential impacts on social inclusion and overall well-being.