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

Correct option is B

The correct answer is (b) headcount ratio.
· The headcount ratio refers to the proportion of a population that lives below the poverty line.
· It is a common measure of poverty used by organizations like the World Bank and national governments to assess poverty levels.
· The poverty line is determined based on the minimum income or consumption level required to meet basic needs such as food, clothing, and shelter.
· The headcount ratio is expressed as a percentage of the total population, showing the share of people who fall below the poverty line.
· This metric helps policymakers evaluate the effectiveness of poverty alleviation programs and make informed decisions on resource allocation.
· It is a simple measure that doesn’t account for the intensity of poverty, meaning it treats all individuals below the poverty line equally, regardless of how far their income falls below that line.