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Q24·GS Paper 1 · Prelims 2019

Official poverty line variations across Indian States

EconomyPoverty measurement and indicesFactual singleMediumStatic

Question

In a given year in India, official poverty lines are higher in some States than in others because

Options

a

poverty rates vary from State to State

b

price levels vary from State to State

Answer
c

Gross State Product varies from State to State

d

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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