Question

Poverty gap is the _____________.

• A. sum of the difference between the poverty line and actual income levels of all people living below that line.
• B. sum of the difference between the poverty line and actual income levels of all people living above that line.
• C. sum of the difference between per capita income and actual income
• D. difference between number of persons above poverty line and number of persons below poverty line

Answer 1

The correct option is A sum of the difference between the poverty line and actual income levels of all people living below that line.

The average shortfall of income of the population below poverty line from the poverty line is called poverty gap. This measurement is used to reflect the intensity of poverty. The poverty line that is used for measuring this gap is the amount typical to the poorest countries in the world combined with the latest information on the cost of living in developing countries.