What Is the Difference Between the Absolute and Relative Concepts

question 17

Essay

What is the difference between the absolute and relative concepts of poverty? What are the major problems in measuring poverty with them?

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency in managing and selling goods.

Gross Profit

Represents the difference between revenue and the cost of goods sold before deducting other expenses.

Earnings Per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares, indicating profitability on a per-share basis.

Corporate Tax Rate

The percentage of corporate income that companies are required to pay to the government as tax.