Question

Consider the headcount ratio as a statistic for measuring the extent of poverty.

Explain why using the headcount ratio to guide poverty reduction policies may not be a good idea

Answer 1

Solution: - Head count ratio is the percentage of people leving below the poverty line- that is how many number of people living below the poverty line will be considered as the head count oratio. and calculated using - poverty rale (PR) = Pln e p= total no. of poor people depending upon the threashold obs (maintly income) no total number of people. I

Head count satio is not be a good idea to guide poverty reduction policies because id does not take into account the intensity of poverty and also it does not indicate how poor the people are. This thing so that the country can reduce the headcount ratio by giving benefits to the people those are closest to the poverty line. lastly the headcount ratio the poverty calculated for individuals and it does not take into account for the households. This make that one poor household consist of more individuals than a smaller rich feimilyas SERVO they cacented the same. WORLD-CLASS LUBRICANTS 100% PERFORMANCE. EVERYTIME.