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Identify the measure that reflects extreme poverty.BoldItalicUnderlineBullet listNumbered listClear formattingAlign leftAlign centerAlign rightAlign justify

Question

Identify the measure that reflects extreme poverty.

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Solution

The measure that reflects extreme poverty is typically defined by the World Bank as living on less than $1.90 per day. This is based on purchasing power parity (PPP) which takes into account the relative cost of living and inflation rates. This measure is used to compare the absolute poverty line across different countries.

Here are the steps to identify this measure:

  1. Understand the Definition: Extreme poverty is defined by the World Bank as living on less than $1.90 per day.

  2. Consider the Purchasing Power Parity (PPP): This measure takes into account the relative cost of living and inflation rates, allowing for a more accurate comparison across different countries.

  3. Look at the World Bank Data: The World Bank collects and publishes data on extreme poverty worldwide. This data can be used to identify the measure of extreme poverty in different countries.

  4. Consider Other Measures: While the $1.90 per day measure is widely used, it's important to note that other organizations may use different measures. For example, the United Nations measures poverty in terms of basic needs, such as access to clean water, food, and shelter.

  5. Understand the Limitations: No measure is perfect, and the $1.90 per day measure has its critics. Some argue that it is too low and does not accurately reflect the reality of extreme poverty, particularly in high-cost countries. Others argue that it does not take into account other aspects of poverty, such as lack of access to healthcare or education.

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