Moderate

The poverty headcount ratio measures the:

Correct answer: B. Percentage of the population living below the poverty line

  • A. Average income of people below the poverty line
  • B. Percentage of the population living below the poverty line
  • C. Total cost of removing poverty from an economy
  • D. Difference between rich and poor household incomes

Explanation

The headcount ratio is the share of people whose income or consumption falls below the defined poverty line. It does not show how far below the line poor people are, which is measured by a poverty gap indicator.

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About Economy of Pakistan

Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.

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