Which one of the following is considered as correct for Poverty Gap?

1. AGap between Rich and Poor
2. BGap between developed and developing nations
3. CDifference between poverty line and actual income level of all those living below that line
4. DGap in the infrastructure facilities between developed nations

Pick an option to check yourself, or open the answer below.

Show answer & explanation

Correct answer: C. Difference between poverty line and actual income level of all those living below that line

Explanation

The poverty gap is the total shortfall between the poverty line and the actual incomes of all those below it.