Absolute Poverty Measures Vary from Country to Country

Multiple Choice

Absolute poverty measures vary from country to country. For example, in 2013, the poverty line in the United States for a family of four with two children was an annual income of $23,550 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?

A) by comparing the percentage of households living below the poverty line to the total population
B) by comparing a household's income to the income required to maintain the average standard of living in a society at a particular time
C) 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
D) by comparing the amount of goods and services that a household's income can purchase in one country to the amount of goods and services that a household's income can purchase in another country of comparable living standard