Official poverty line variations across Indian States
Question
In a given year in India, official poverty lines are higher in some States than in others because
Options
poverty rates vary from State to State
price levels vary from State to State
Gross State Product varies from State to State
quality of public distribution varies from State to State
Explanation
Official poverty lines in India are adjusted for regional price variations because the cost of living differs significantly across states. A basket of goods may cost more in one state than another due to differences in local prices, inflation rates, and economic conditions. The poverty line is constructed to reflect a minimum caloric intake and basic consumption basket, and this basket has different monetary values in different regions. Poverty rates, GSP, and PDS quality are outcomes or consequences, not reasons for varying poverty line calculations. > Poverty line adjusts for regional cost of living differences (price levels). Answer: (b).
Question details
Year
2019
Paper
GS Paper 1
Question
Q24
Subject
Economy
Sub-topic
Poverty measurement and indices
Type
Factual single
Difficulty
Medium
Nature
Static
Source hint
NCERT Economics - Poverty in India
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