Relative measure of full social inclusion meant to provide one perspective on poverty. Has both pre & post tax income measures, but post tax is more important. Adjusted based on family size & community size/environment: concessions for more children, rural vs urban community. Change in post & pre-tax lico increases with income, shows progressive pay more tax when you"re richer. Policy implication: can use different licos to measure for different policies that"s targeted toward certain indv (i. e. large rural families vs poor single people living in urban centres) Policy implication: contend to the fact that having larger fam size + living environment make a difference on acceptable (cid:862)standard of living(cid:863) Measure of disposable income absolute measure of poverty based on fcs. Based on adam smith"s def of (cid:862)necessaries(cid:863) which are not only commodities indispensable for supporting life, but also whatever custom deems necessary for decent living.