Prelims 2019 · Economy · Question 64
In a given year in India, official poverty lines are higher in some States than in others because
Answer
price levels vary from State to State
- (a) Poverty rates vary from State to State — Poverty line is a threshold for minimum consumption/expenditure, not something set higher because more or fewer people are poor. Verdict: Incorrect.
- (b) Price levels vary from State to State — Official poverty lines differ across States mainly because the cost of basic goods and services differs; higher prices require a higher poverty line. Verdict: Correct.
- (c) Gross State Product varies from State to State — A State’s total output/income does not directly determine the poverty line; cost of living does. Verdict: Incorrect.
- (d) Quality of public distribution varies from State to State — PDS performance may affect welfare, but official poverty lines are not primarily fixed on that basis. Verdict: Incorrect.
Correct answer: (b)