Absolute and relative poverty
Absolute poverty = the condition in which a person lacks one or more of the basic necessities. Often measured by living on less than $1.25 dollars a day.
Relative poverty
= the condition in which a person cannot maintain the average standard of living in the society he/she lives in.
The standard of living, and what is considered as ‘normal’, is different per country. It is higher in MEDCs than in LEDCs.