Measurement of Poverty

Description: This quiz is designed to assess your understanding of the concept of poverty measurement and its various aspects.
Number of Questions: 15
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Tags: poverty measurement economic indicators development economics
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Which method of poverty measurement considers the inability to meet basic needs?

  1. Headcount Ratio

  2. Poverty Gap Index

  3. Sen Index

  4. Gini Coefficient


Correct Option: C
Explanation:

The Sen Index is a poverty measurement method that takes into account the inability of individuals to meet basic needs, such as food, clothing, and shelter.

What is the most commonly used poverty line?

  1. Absolute Poverty Line

  2. Relative Poverty Line

  3. Subjective Poverty Line

  4. Objective Poverty Line


Correct Option: A
Explanation:

The absolute poverty line is the most commonly used poverty line, and it is defined as the minimum income required to meet basic needs.

Which poverty measurement method considers the distribution of income among the poor?

  1. Headcount Ratio

  2. Poverty Gap Index

  3. Sen Index

  4. Gini Coefficient


Correct Option: D
Explanation:

The Gini Coefficient is a poverty measurement method that considers the distribution of income among the poor, and it ranges from 0 to 1, with 0 representing perfect equality and 1 representing perfect inequality.

What is the main limitation of the Headcount Ratio?

  1. It does not consider the depth of poverty.

  2. It does not consider the distribution of income among the poor.

  3. It is difficult to calculate.

  4. It is not comparable across countries.


Correct Option: A
Explanation:

The main limitation of the Headcount Ratio is that it does not consider the depth of poverty, which refers to the extent to which individuals fall below the poverty line.

Which poverty measurement method considers the intensity of poverty?

  1. Headcount Ratio

  2. Poverty Gap Index

  3. Sen Index

  4. Gini Coefficient


Correct Option: B
Explanation:

The Poverty Gap Index is a poverty measurement method that considers the intensity of poverty, which refers to the average distance between the income of the poor and the poverty line.

What is the main advantage of the Sen Index?

  1. It considers the inability to meet basic needs.

  2. It considers the distribution of income among the poor.

  3. It is easy to calculate.

  4. It is comparable across countries.


Correct Option: A
Explanation:

The main advantage of the Sen Index is that it considers the inability of individuals to meet basic needs, which is a more comprehensive measure of poverty than simply considering income.

Which poverty measurement method is based on subjective perceptions of poverty?

  1. Headcount Ratio

  2. Poverty Gap Index

  3. Sen Index

  4. Subjective Poverty Line


Correct Option: D
Explanation:

The Subjective Poverty Line is a poverty measurement method that is based on subjective perceptions of poverty, and it is determined by asking individuals to self-report their poverty status.

What is the main limitation of the Gini Coefficient?

  1. It does not consider the depth of poverty.

  2. It does not consider the distribution of income among the poor.

  3. It is difficult to calculate.

  4. It is not comparable across countries.


Correct Option: A
Explanation:

The main limitation of the Gini Coefficient is that it does not consider the depth of poverty, which refers to the extent to which individuals fall below the poverty line.

Which poverty measurement method is based on objective indicators of poverty?

  1. Headcount Ratio

  2. Poverty Gap Index

  3. Sen Index

  4. Objective Poverty Line


Correct Option: D
Explanation:

The Objective Poverty Line is a poverty measurement method that is based on objective indicators of poverty, such as income, consumption, and access to basic services.

What is the main advantage of the Headcount Ratio?

  1. It is easy to calculate.

  2. It is comparable across countries.

  3. It considers the depth of poverty.

  4. It considers the distribution of income among the poor.


Correct Option: A
Explanation:

The main advantage of the Headcount Ratio is that it is easy to calculate, as it simply involves counting the number of individuals who fall below the poverty line.

Which poverty measurement method is based on the concept of social exclusion?

  1. Headcount Ratio

  2. Poverty Gap Index

  3. Sen Index

  4. Multidimensional Poverty Index


Correct Option: D
Explanation:

The Multidimensional Poverty Index is a poverty measurement method that is based on the concept of social exclusion, and it considers multiple dimensions of poverty, such as health, education, and living standards.

What is the main limitation of the Subjective Poverty Line?

  1. It is difficult to calculate.

  2. It is not comparable across countries.

  3. It is based on subjective perceptions of poverty.

  4. It does not consider the depth of poverty.


Correct Option: C
Explanation:

The main limitation of the Subjective Poverty Line is that it is based on subjective perceptions of poverty, which can vary across individuals and societies.

Which poverty measurement method is based on the concept of capability deprivation?

  1. Headcount Ratio

  2. Poverty Gap Index

  3. Sen Index

  4. Gini Coefficient


Correct Option: C
Explanation:

The Sen Index is a poverty measurement method that is based on the concept of capability deprivation, which refers to the inability of individuals to achieve certain basic capabilities, such as being able to live a long and healthy life or to have access to education.

What is the main advantage of the Poverty Gap Index?

  1. It considers the depth of poverty.

  2. It considers the distribution of income among the poor.

  3. It is easy to calculate.

  4. It is comparable across countries.


Correct Option: A
Explanation:

The main advantage of the Poverty Gap Index is that it considers the depth of poverty, which refers to the extent to which individuals fall below the poverty line.

Which poverty measurement method is based on the concept of relative deprivation?

  1. Headcount Ratio

  2. Poverty Gap Index

  3. Sen Index

  4. Relative Poverty Line


Correct Option: D
Explanation:

The Relative Poverty Line is a poverty measurement method that is based on the concept of relative deprivation, which refers to the extent to which individuals fall below the average standard of living in a society.

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