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Headcount ratio is calculated by dividing the number of people below the poverty line by: –
Total poor
Urban poor
Rural poor
Total population
- Headcount ratio: It measures the proportion of a population that lives below the poverty line.
- The formula involves dividing the number of people below the poverty line by the total population.
- This gives a percentage of people in poverty relative to the entire population.
- Option 1: Total poor
- Dividing by the total poor would not be useful as it would always give the result of 1.
- Option 2: Urban poor
- This refers to the poor living in urban areas only.
- Option 3: Rural poor
- This refers to the poor living in rural areas only.
- Option 4: Total population
- This gives a true sense of how widespread poverty is within the entire population.
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By: santosh ProfileResourcesReport error
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