Absolute deprivation is an easier framework to use to address poverty as opposed to relative deprivation because absolute deprivation allows the focus to be on those who need the most help.
<h3>What are absolute deprivation and relative deprivation?</h3>
Absolute deprivation refers to the inability to meet one's fundamental physical needs, e.g. food, clothing, shelter.
However, relative deprivation is a socio-cultural phenomenon that occurs when individuals are unable to obtain what the majority of others in their society can.
Absolute deprivation is often described as a minimum degree of need that allows a person to sustain and participate effectively in society.
Therefore, absolute deprivation allows us to shift our interest in addressing poverty rather than from relatively deprived aspect.
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This effect is called proactive interference.
Proactive interference (PI) is a type of explanation for why we forget or cannot recall information. The PI effect means that forgetting occurs because old memories interfere with our ability to form memories. An example of the PI effect is when you try to learn or memorize a new phone number, however, phone numbers that already exist in your memory interfere with your learning of the new phone number.
An operational definition, when applied to data collection, is a clear,
concise detailed definition of a measure. The need for operational
definitions is fundamental when collecting all types of data. It is
particularly important when a decision is being made about whether
something is correct or incorrect, or when a visual check is being made
where there is room for confusion.
Answer: Discount rates are used to determine today's value of money paid or received at some future time.
This calculation is used in the cost-benefit analysis in order to place all economic flows of a project that occur at different points in time into a single year currency so that costs and benefits can be compared.
The rates used are typically around 10%, but try to analyze them with other rates between 5% and 15% to determine if the viability of the project is sensitive to the discount rate. It is defined by World Bank or the government of the country concerned.
