Different nations, national and international institutions have used various tools to measure poverty. The commonly used (HCR and PGI) measure of Poverty is explained as below. 1) Head Count Ration (HCR) HCR refers to the number of people in a society living below the poverty line fixed based on some minimum consumption level. So far it is the most widely used measure of poverty in all the countries. It can be expressed as: Head Count Ratio (HCR) = H/N Where, N = The number of populations. H = The number of persons having income below the poverty line. Example: If a country in a certain period has a total population of one billion with 600 million below the poverty line. Then, Head Count Ratio (HCI) = 1 million/600 billions = 0.6 = 60% It means, 60 percent of the country's population is below the poverty line. Draw Backs: 1. HCR method of measuring the poverty index is easy to unders...