The proportion of the population below the poverty line is called the poverty ratio or __________.

Key Points

• The proportion of the population below the poverty line is called the headcount ratio.
• The headcount ratio is a measure of poverty that counts the number of people whose income falls below the poverty line, thereby indicating the percentage of the population that is impoverished.
• This ratio helps in understanding the extent of poverty in a particular region or country and is crucial for formulating policies and strategies to alleviate poverty.
• It is one of the most straightforward and commonly used methods to measure poverty levels.

Additional Information

• The poverty line is typically determined based on the minimum income required to meet basic needs such as food, clothing, and shelter.
• The headcount ratio does not take into account the depth of poverty or the distribution of income among the poor; it only provides a headcount of those below the poverty line.
• Other measures of poverty include the Poverty Gap Index and the Multidimensional Poverty Index, which consider the severity and multiple dimensions of poverty, respectively.