📈 EconomyUPSC 2019Fundamentals of Economy

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

aPoverty rates vary from State to State
bPrice levels vary from State to State
cGross State Product varies from State to State
dQuality of public distribution varies from State to State
✓ Correct answer: b) Price levels vary from State to State
ExplanationAccording to the World Bank , Poverty is pronounced deprivation in well-being and comprises many dimensions.It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity.The new ex- treme poverty line of $2.15 per person per day, which replaces the $1.90 poverty line, is based on 2017 PPPs Option (b) is correct : The official poverty line in India is de- termined based on the minimum income required to meet basic consumption needs, primarily food, adjusted for other essentials like housing, education, and healthcare.Since the cost of living and price levels differ across states due to factors like inflation, regional disparities, and market conditions, the poverty line is higher in states where the price levels are higher.For instance, states with higher urbanization or living costs like Maharashtra or Delhi might have a higher poverty line compared to states with lower living costs like Bi- har or Odisha.UPSC GS Paper-I PYQs 324 According to the Planning Commission, the national poverty line for rural regions in 2011–12 wa

Practice more Economy PYQs

Attempt a free 10-question quiz or browse the full Economy previous-year-question bank with instant answers and explanations.

📈 Economy PYQs →