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Poverty in Decilia is measured relatively, with people in the bottom 10 percent of the income...

Poverty in Decilia is measured relatively, with people in the bottom 10 percent of the income distribution being defined as poor. Suppose a politician in Decilia promises to halve the poverty rate in five years. This type of goal is only achieveable:

A. if an absolute measure of poverty is used.

B. if a relative measure of poverty is used.

C. as long as the politician truly cares about the poor.

D. if taxes are increased on the wealthy for the benefit of the poor.

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A. If an absolute measure of poverty is used.

Using a relative measure such as the "bottom 10 percent" will keep the poverty rate the same. Think about it a country will always have a bottom 10 percent be it a rich or a poor country. Using an abosolute measure such as people who are earning less than a $1000/ month can be used. With an absolute measure Decilia can reduce poverty.

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