Final answer:
Relative poverty thresholds indicate economic status compared to societal standards, potentially labeling someone as 'poor' in wealthy countries even when basic needs are met, unlike absolute poverty where even basic needs are unaffordable.
Step-by-step explanation:
A relative poverty threshold can sometimes paint a misleading picture of an individual's economic situation. It defines poverty in relation to the overall standards and average income of a society, rather than based on the absolute basics required for survival. Therefore, someone might be considered 'poor' in a wealthy country if they earn less than the median income, even though they can afford necessities such as food, shelter, and clothing. Conversely, absolute poverty refers to a condition where individuals cannot afford the basic necessities needed for living, such as clean water, safe housing, or access to healthcare.
The concept of relative poverty is important because it captures the disparities in living standards within a society, reflecting the inability to keep up with the average lifestyle. However, it may not always reflect an individual's struggle for survival, as someone could be above the absolute poverty line but still viewed as 'poor' relative to their society's standards. This differentiation is crucial for understanding both the subjective and objective aspects of poverty.