A family is considered to be in poverty if its income is not

A family is considered to be in poverty if its income is not greater than three times the minimum food expenditures for an average family of the same size, as calculated by the Department of Agriculture.

How is this definition an absolute measure of poverty?

How is this definition a relative measure of poverty?

Solution

Absolute measure

Since the three times is considered for food shelter and clothing, this is an absolute measure of poverty on the whole. Where each part of income is required for each of food, shelter and clothing on the whole.

Relative measure

The relative measure is indeed because of the fact that the food price changes on continuously and with the constant income, the measure becomes relative all in all.