Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Poverty

Question:

The following statements are about measuring poverty. Select the correct statement :

(A) There are many ways of measuring poverty

(B) Poverty may be measured on the basis of monetary values of the minimum calorie intake

(C) Government uses Monthly per Capita Expenditures as proxy for income of households to identify the poor

(D) Measures of poverty differ for different section of society

(E) Factors such as accessibility to basic education, health care, drinking water & sanitation are not considered to develop poverty line

Choose the correct answer from the options given below :

Options:

(A), (B), (C) & (D) Only

(A), (B) & (D) Only

(A), (B), (C) & (E) Only

(A), (B), (D) & (E) Only

Correct Answer:

(A), (B), (C) & (E) Only

Explanation:

The correct answer is option (3) : (A), (B), (C) & (E) Only

 

 

(A) There are many ways of measuring poverty : This is correct. Poverty can be measured in various ways, not just through income or consumption levels.

(B) Poverty may be measured on the basis of monetary values of the minimum calorie intake : This is correct. This is one method used to determine poverty in India.

(C) Government uses Monthly per Capita Expenditures as proxy for income of households to identify the poorThis is correct.

(D) Measures of poverty differ for different section of societyThis is incorrect within the context of a single country. Typically, a country uses a uniform poverty measure, although the impact and experience of poverty can vary across different demographic and regional groups.

(E) Factors such as accessibility to basic education, health care, drinking water & sanitation are not considered to develop poverty lineThis is correct. These factors are not considered in India to determine poverty line.

"There are many ways of measuring poverty (A). One way is to determine it by the monetary value (per capita expenditure) of the minimum calorie intake that was estimated at 2,400 calories for a rural person and 2,100 for a person in the urban area (B). Based on this, in 2011-12, the poverty line was defined for rural areas as consumption worth Rs 816 per person a month and for urban areas it was Rs 1,000. The government uses Monthly Per Capita Expenditure (MPCE) as proxy for income of households to identify the poor (C).

........

There are many factors, other than income and assets, which are associated with poverty; for instance, the accessibility to basic education, health care, drinking water and sanitation. They need to be considered to develop Poverty Line. The existing mechanism for determining the Poverty Line also does not take into consideration social factors that trigger and perpetuate poverty such as illiteracy, ill health, lack of access to resources, discrimination or lack of civil and political freedoms (E)."