Relative poverty
What Relative poverty means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Relative poverty
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Reference: Pearson Edexcel
Defined in relation to the average standard of living in a specific society, typically measured as living in a household with an income below 60% of the median income.
A national measure defining poverty as a percentage of the median household income, reflecting the ability to participate in a specific society's standard of living.
A situation perpetuated by the poverty trap, in which those on low incomes face a disincentive to earn more.
Topics that use Relative poverty
- Poverty and inequality (Pearson Edexcel A-Level)
- Re-distribution of income and wealth (Pearson Edexcel A-Level)
Related terms
- Absolute poverty
- Government intervention
- Incentives to work
- Income inequality
- Line of equality
- Lorenz curve
- Median income
- Progressive taxation
Using Relative poverty in the exam
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