Absolute poverty measures vary from country to country.For example, in 2015, the poverty line in the United States for a family of four with two children was an annual income of $24,250 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?

Question

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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 measure is often used to calculate poverty rates in poor countries and is based on the minimum level of consumption necessary for survival. It is important to note that the absolute poverty measure varies from country to country and is often adjusted for factors such as inflation, cost of living, and household size.

Absolute Poverty Measures Vary from Country to Country