Economics Poverty Questions
The poverty headcount ratio is a measure that indicates the proportion of a population living below the poverty line. It calculates the number of individuals or households whose income or consumption falls below a certain threshold level.
The poverty gap is the average shortfall in income or consumption of the poor population from the poverty line. It measures the depth of poverty and provides information on how far the poor are from the poverty line.
The severity index is a measure that takes into account both the poverty headcount ratio and the poverty gap. It provides a more comprehensive understanding of poverty by considering the intensity of poverty experienced by the poor population.
The elasticity index measures the responsiveness of poverty to changes in economic growth or other factors. It helps to assess the impact of different policies or interventions on poverty reduction.
The threshold line is the income or consumption level below which individuals or households are considered to be in poverty.
The incidence reduction strategy refers to the various policies and programs implemented to reduce the number of people living in poverty.
The program cycle trap refers to the situation where individuals or households become dependent on welfare programs and are unable to escape poverty due to limited opportunities for economic advancement.
In summary, the poverty headcount ratio, gap severity, elasticity index, threshold line, incidence reduction strategy, program cycle trap, and threshold gap severity elasticity index are all concepts and measures used in the field of economics to understand and address poverty.