Economics · Poverty and Inequality
Which of the following statements is correct about the Total Poverty Gap (TPG)?
- 1TPG measures the relative degree of income inequality in a country.
- 2TPG measures the share of total national income that each factor of production receives.
- 3TPG is the absolute number of people whose incomes fall below the absolute poverty line.
- 4TPG measures the total amount of income necessary to raise everyone below the poverty line up to that line.✓
Correct answer
TPG measures the total amount of income necessary to raise everyone below the poverty line up to that line.
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