Okuzeka
Economics vocabulary · Development and Inequality

Poverty line

Meaning in economics, with examples

nounCommon term

In economics, poverty line means: The minimum level of income considered necessary to meet basic needs in a country; people living below it are counted as poor.

In Turkish: yoksulluk sınırı

How it is used

Each country sets its own national poverty line, and the World Bank uses an international line for extreme poverty, expressed in dollars per person per day at purchasing power parity. People live above or below the poverty line; it is also called the poverty threshold.

Example sentences

  1. Around one in five households lives below the national poverty line.

  2. Millions of people were lifted above the poverty line during the decades of fast growth.

Common collocations

  • below the poverty line
  • above the poverty line
  • national poverty line
  • international poverty line
  • inequalityThe unequal distribution of income, wealth or opportunities between people or groups in a society, or between countries.
  • developing countryA country with a lower average income, less industrial output and weaker infrastructure than the rich industrialised countries.
  • per capitaFor each person in a population; a total divided by the number of people, as in GDP per capita or income per capita.
  • purchasing powerThe amount of goods and services that a sum of money or an income can buy; it falls when prices rise faster than incomes.
  • minimum wageThe lowest hourly, daily or monthly pay that employers are legally allowed to pay workers, set by the government or by law.

More terms: Development and Inequality

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This page explains English vocabulary for learners. It is not financial advice.