Question

Which of the following statements about poverty is FALSE?

a. It is both an absolute and a relative concept

b. The poverty line should be the same in all countries because basic needs do not change.

c. Poverty can be measured using data for households or individuals

d. People can remain poor because they cannot access the credit market.

Answer 1

Option D is not correct

It is true that there are both absolute poverty and relative poverty depending upon the method of measurement. Data related to individual income as well as income of the household can be used to determine if income earned is above or below the poverty threshold. Because there are some basic requirements for a decent standard of living, poverty standard should also be same across the globe and therefore poverty line should be same. However it is not true that people can remain poor because they do not have access to credit market. There are different type of deprivations besides credit market which, if taken care of, can reduce poverty.