Question : The poverty gap index measures:
Option 1: The percentage of people living below the poverty line
Option 2: The severity of poverty among the poor
Option 3: The inequality in income distribution
Option 4: The rate of poverty reduction over time
Correct Answer: The severity of poverty among the poor
Solution : The correct answer is (b) The severity of poverty among the poor. The poverty gap index is a measure that assesses the severity of poverty among the poor population. It takes into account the depth of poverty by considering how far below the poverty line the income or consumption of the poor falls on average. The index provides an indication of the extent to which the poor are below the poverty line and the intensity of their poverty. The poverty gap index calculates the average shortfall in income or consumption of the poor relative to the poverty line, and it considers both the number of people below the poverty line and the extent to which they are below it. It provides a measure of the overall welfare loss experienced by the poor due to their poverty status.
Question : Which of the following terms describes people who are always below the poverty line?
Option 1: Seasonal Poor
Option 2: Always Poor
Option 3: Chronic Poor
Option 4: Churning Poor
Question : Which of the following poverty estimation methods is used by the Planning Commission of India?
Option 1: Headcount Ratio
Option 2: Poverty Gap Index
Option 3: Human Poverty Index
Option 4: Multidimensional Poverty Index
Question : The concept of "absolute poverty" is based on:
Option 1: Relative income levels
Option 2: Basic needs and minimum standard of living
Option 3: Social exclusion and discrimination
Option 4: Income distribution and inequality
Question : The people who never move above the poverty line are called;
Option 1: chronic poor
Option 2: non-poor
Option 3: transient poor
Option 4: churning poor
Question : BPL is an economic benchmark related to threshold income. What does "BPL" stand for?
Option 1: Base Price Line
Option 2: Below Price Line
Option 3: Below Poverty Line
Option 4: Base Poverty Line
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