Otto and Marta live in a nation with a 15% poverty rate. Their household income is sufficient to pay for food, shelter, and basic needs with some funds available for other things their family wants. However, their household income is lower than 75% of the households in their nation. Otto believes that they are prosperous and not poor, but Marta believes that they are poor. Otto is defining poverty in _____ terms, and Marta is defining poverty in _____ terms.

Question

Quizplus · Accepted Answer

Otto is using "absolute" terms because he is considering their ability to meet basic needs as the criterion for not being poor, regardless of their income compared to others. Marta is using "relative" terms because she considers their economic status in relation to other households in their nation.

Otto and Marta Live in a Nation with a 15