Indicators of monetary poverty and multidimensional poverty are the most important. Poverty can be measured in absolute terms - a cut-off income line below which individuals are not able to afford a bundle of pre-defined basic goods - or in relative terms -with the relative poverty line defined as a percentage (usually 50 or 60%) of median income. In addition, Sen (1983) argues that the right approach for assessing the standard of living is to focus not on basic commodities or utility but on capabilities or functionings.