Write the problems encountered in measurement of poverty.
Answers
Answer:
Prolems in encountered in measurement of poverty include:
1. Not having enough resources to gather good quality data. Because of resource constraint measuring the amount produced in a poor country in a year is very difficult.
2. The informal economy. There are works which technically means production but not taken into account for measuring GDP. Examples housework, gardening, etc
3. Disparity between purchasing power of different currencies. The currency value differs from place to place and has a large margin of error.
4. The data itself may not tell you enough. For example, distinguishing between transient poverty and chronic poverty is very difficult.
Because there are differing ways of defining poverty, it is inevitable that the measurement of poverty is rather difficult. Clearly, definition indicates what is to be measured. ... Poverty defined in terms of an enforced lack of socially perceived necessities.