Question

UPSC Prelims 2019 Question:

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

1. poverty rates vary from State to State
2. price levels vary from State to State
3. Gross State Product varies from State to State
4. quality of public distribution varies from State to State

Answer (Detailed Solution Below)

Option 2: price levels vary from State to State

Detailed Solution

Explanation:

Poverty is the deprivation of basic amenities like shelter (housing), food, clothing, etc. NITI Ayog estimates poverty based on methodology given by an expert committee called Prof. Suresh Tendulkar Committee (2005). It expresses the poverty line on the basis of a basket of commodities. The basket of commodities (Poverty line basket) will be the same for all the states but prices of commodities are different from state to state, hence poverty line varies from state to state.

Therefore, option (2) is the correct answer.

Subject: Economics | Poverty and Employment

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