Absolute poverty measures vary from country to country.For example, in 2012, the low income cut-off in Canada was an annual income of approximately $20,000 but economists often use a much lower threshold income of $1 per day when calculating the rate of poverty in poor countries.How is this absolute poverty measured?

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Absolute poverty is measured by comparing the amount of goods and services that a household's income can purchase to an objective measure of the amount of income needed to sustain a certain predetermined standard of living. This is often done by using a poverty line or threshold below which a person or household is considered to be living in absolute poverty. The poverty line can vary from country to country and is often set by the government or international organizations based on the cost of a basic basket of goods and services necessary for survival.

Absolute Poverty Measures Vary from Country to Country