Government uses __________ as proxy for income of households to identify the poor.
A
per capita expenditure
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B
monthly per capita expenditure
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C
annual expenditure
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D
none of the above
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Solution
The correct option is C monthly per capita expenditure
The government uses Monthly Per Capita Expenditure (MPCE) as proxy for income of households to identify the poor.
This mechanism is helpful in identifying the poor as a group to be taken care of by the government, but it would be difficult to identify who among the poor need help the most.