Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

What is the term used when "The number of poor is estimated as the proportion of people below the poverty line"?

Options:

Head-count ratio

Transient poor

Churning poor

Chronic poor

Correct Answer:

Head-count ratio

Explanation:

When the number of poor is estimated as the proportion of people below the poverty line, it is known as ‘Head Count Ratio’. One of the negative features of the head count ratio is that it ignores the depth of poverty i.e., if the poor become poorer, the head count index does not change.