Final answer:
The depth of poverty indicates how far below the poverty line individuals live, with the extreme poverty line set at $1.90 per day. This measure helps to understand the allocation of resources and access to essential services.
Step-by-step explanation:
The depth of poverty is measured by the extent to which a population lives below appropriate poverty thresholds. Economists typically use a set dollar amount to define the extreme poverty line. According to the World Bank, this line is drawn at living on less than $1.90 per person per day. In contrast, relative poverty refers to individuals who can afford basic necessities but cannot attain their society's average standard of living. The measurement of poverty, especially in low-income countries, is critical to understanding the disparities in resource allocation and access to basic needs such as adequate food, clean water, safe housing, and healthcare.