Which statement suggests that an absolute measure of poverty is better than a relative measure of inequality for measuring the well-being of less well-off individuals?
A) Self-reported well-being may fall as neighbors' incomes rise.
B) If those least fortunate achieve a sufficient level of consumption,it doesn't matter how rich the richest people are.
C) Driving a $10,000 car is more adequate when others drive $10,000 cars than when others drive $30,000 cars.
D) A person is only living in poverty if they have substantially less than others.

Question

Quizplus · Accepted Answer

This statement suggests that as long as the less fortunate have achieved a sufficient level of consumption, the wealth of other individuals is irrelevant. This implies that an absolute measure of poverty, based on a basic level of consumption, is a better indicator of well-being for the less well-off individuals than a relative measure of inequality.

Which Statement Suggests That an Absolute Measure of Poverty Is