Final answer:
Individuals living on less than $1.00 a day are considered to be in extreme poverty, a term defined by the World Bank. With half the world living on less than $2.50 a day, there is a significant economic disparity between poorer countries and wealthier nations like the U.S.
Step-by-step explanation:
The term for individuals who live on less than $1.00 a day is extreme poverty. The World Bank defines extreme poverty as living on less than $1.90 international-$ per day. Living in such conditions poses severe challenges, as the cost for food, clothing, and shelter must be met with this limited income.
Globally, regions like China, India, Nigeria, and Egypt have a significant number of people living under the extreme poverty line. Moreover, about half the world lives on less than $2.50 a day, emphasizing the disparity when compared to wealthier nations like the United States, where purchasing power is considerably higher. Despite adjustments for purchasing power paradox (PPP), these figures still highlight the wide economic divide across different regions of the world.