Do you think that the Monthly per capita expenditure (MPCE) is satisfactory mechanism for identifying the poor houeshold in the country? Write your answer with appropriate agrumments .
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Do you think that the Monthly per capita expenditure (MPCE) is satisfactory mechanism for identifying the poor houeshold in the country? Write your answer with appropriate agrumments .
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Answer:
The government uses Monthly Per Capita Expenditure (MPCE) as proxy for income of households to identify the poor.
This mechanism is helpful in identifying the poor as a group to be taken care of by the government, but it would be difficult to identify who among the poor need help the most.
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