Question:
The ‘Headcount Index’ of poverty measures:
(1) the depth of poverty in a country.
(2) the inequality among the poor.
(3) the percentage of the population living below the poverty line.
(4) the average income of the poor.
(5) the gap between the rich and the poor.
Correct Answer:
(3)
Answer Explanation:
The Headcount Index ($H$) is the simplest poverty measure: the proportion of the population whose income falls below the official poverty line. It counts how many are poor, but not how poor they are.
Topic: Public Finance Year: 2024
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