Poverty can be measured in two ways: absolute and relative. Absolute poverty is measured by taking a person’s income and comparing it against the cost of a predetermined basket of goods. If that person’s income is insufficient to cover the cost of the basket then they are considered to be living in poverty. Relative poverty compares a person’s total income and spending patterns with those of the general population. People spending a larger proportion of their income than the threshold that is considered typical of the general population are considered to be living in poverty.