Which of the following is not a category of the poor?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → None of the above
Economists group the poor by how long they stay poor, and all three options are such groups.
Option (1) Chronic poor — people who are always poor, and those who are usually poor but may sometimes have a little more money.
Option (2) Churning poor — people who regularly move in and out of poverty, such as small farmers and seasonal workers.
Option (3) Transient poor — the wider group of the temporarily poor, made up of the churning poor and the occasionally poor, who are rich most of the time but slip into poverty through bad luck.