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?

---

Definitions:

Competitive Economy

An economic system in which businesses and individuals freely compete for consumers' money with minimal government intervention, leading to innovation and efficient market outcomes.

Homogeneous

Describes a substance or mixture that has a uniform composition and properties throughout.

Attractive Jobs

Employment positions deemed desirable due to factors like high pay, job security, career growth opportunities, and positive work-life balance.

Perfectly Mobile

Refers to resources or labor that can move without restriction or barriers between areas to find employment or investment opportunities.