In addition to income per capita, which of the following is a way to measure the impacts of poverty?

• A. Examining access to basic services such as healthcare and education
• B. Assessing the number of firms in the market
• C. Calculating the total population size
• D. Measuring the average price level in the economy

Answer: (A)

Verified step by step guidance

1. Understand that poverty measurement goes beyond just income per capita, as income alone may not capture the full experience of deprivation.
2. Recognize that access to basic services such as healthcare and education is a critical dimension of poverty because it reflects the ability of individuals to meet essential needs and improve their well-being.
3. Evaluate why other options like assessing the number of firms in the market, calculating total population size, or measuring average price levels do not directly measure poverty impacts, as they relate more to economic structure or macroeconomic indicators rather than individual welfare.
4. Conclude that examining access to basic services provides a more comprehensive understanding of poverty by highlighting social and economic barriers faced by the poor.
5. Summarize that multidimensional poverty measures often include indicators like healthcare access, education, living standards, and income to better capture the impacts of poverty.