Economics Poverty Questions
Poverty is measured using various indicators and methods. The most commonly used measure is the poverty line, which sets a threshold income level below which individuals or households are considered to be living in poverty. This threshold is typically based on the cost of a basic basket of goods and services necessary for survival. Other measures include the poverty rate, which calculates the percentage of the population living below the poverty line, and the poverty gap, which measures the average shortfall in income or consumption for those below the poverty line. Additionally, multidimensional measures of poverty take into account factors such as access to education, healthcare, and basic services to provide a more comprehensive understanding of poverty.