Which of the following helps to measure the Poverty Determination?

The correct answer is Option 4: All of these

Key Points

• Poverty Gap Index: Measures the intensity of poverty by calculating the average income shortfall of the poor from the poverty line.
• Head Count Ratio: Measures the proportion of the population living below the poverty line, providing a basic indicator of poverty.
• Sen Index: Combines information from both the Head Count Ratio and the Poverty Gap Index to assess poverty in terms of both incidence and inequality.

Important Points

• All three methods—Poverty Gap Index, Head Count Ratio, and Sen Index—are used to measure different aspects of poverty, including its extent, intensity, and distribution.
• Each index has its own strengths and limitations, and they are often used together for comprehensive poverty assessment.

Additional Information

• Poverty Gap Index: Focuses on how far below the poverty line the poor are, helping to understand the depth of poverty.
• Sen Index: It also accounts for income distribution among the poor, thus giving a more comprehensive view of poverty beyond mere incidence and depth.