Practicing Success
Which of the following is used by the "Government" to identify the poor in the country? |
Monthly per capita expenditure Monthly investment expenditure Monthly consumption expenditure Monthly disposable income |
Monthly per capita expenditure |
The government uses Monthly Per Capita Expenditure (MPCE) as a proxy for the income of households to identify the poor. Economists state that a major problem with this mechanism is that it groups all the poor together and does not differentiate between the very poor and the other poor. |