• Problem Spotlight: Helps us understand how big the issue is.
• Policy Planning: Helps governments and organizations target aid and interventions.
• Real-World Example: Imagine a city planner. They can't fix the roads without knowing where the potholes are, right? Same with poverty - gotta spot it to stop it!

 Absolute Poverty: * Poverty Line: The bare minimum income needed to get by. Below this line, you're considered in absolute poverty. * Setting the Line: Both nationally and internationally. * World Bank's Poverty Line: Started at $1.00 a day in 1990, then to $1.25, and now at $1.90 (in purchasing power parity or PPP dollars). * Real-World Example: Imagine trying to survive on $1.90 a day in the U.S. It's like trying to buy lunch with just pennies!

Relative Poverty: * Percentage of Median Income: Usually 50% of the median income. * Calculation Example: If the median annual income is $20,000, then the relative poverty line is $10,000. * Real-World Example: Imagine earning half as much as the "middle" person in your country. It's like running a race but starting way behind

 Multidimensional Poverty Index (MPI): * Beyond Income: Created by OPHI and UNDP in 2010, it measures more than just income! * Dimensions & Indicators: Covers education, health, and living standards through ten indicators (e.g., child mortality, nutrition, electricity). * MPI Poor: Deprived in three or more indicators. * Real-World Example: Think of poverty like a puzzle with pieces of health, education, housing, etc. MPI fits all these pieces together