Final answer:
Atkinson's e50 is a measure of relative poverty that indicates the proportion of the population with income below 50% of median income.
Step-by-step explanation:
Atkinson's e50 is a measure of relative poverty that refers to the share of the population below 50% of median income. Relative poverty is a concept used to evaluate the economic status of individuals or families in comparison to the societal average.
It suggests that a person is considered relatively poor if their income is significantly less than the average income level, which in this context, is measured by the median income. This measure differs from absolute poverty, which gauges whether individuals have the means to meet their basic necessities such as food and shelter.
The distinction between relative and absolute poverty is crucial for understanding the diverse ways poverty is assessed across different countries. In the United States, for example, poverty is typically considered in relative terms. Under these measures, the poverty thresholds vary by the size of the family.
For instance, in 2021, the poverty threshold was set at $12,880 for an individual and $26,500 for a family of four, according to the guidelines of the Office of The Assistant Secretary for Planning and Evaluation (ASPE).
To calculate the poverty rate, one can use the information provided in a given example.
For instance, if in country A the population is 300 million and 50 million people are living below the poverty line, the poverty rate would be calculated by dividing the number of people living below the poverty line by the total population and then multiplying by 100 to get a percentage:
(50 million / 300 million) * 100 = 16.67%.
Therefore, the poverty rate is 16.67%.