Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Poverty

Question:
A line that divides the population of the country into poor and non-poor is known as the poverty line. The number of people in a nation living below the poverty line is known as the headcount ratio. It is important to bear in mind that the poverty line should neither be too high nor too low. The poverty line can be defined in terms of per capita monthly expenditure as well as calorie norms. An expert group was formed by Planning Commission in 2014 under the chairmanship of Dr. C.Rangarajan to review the methodology for measurement of poverty. A report submitted by the committee in 2014 recommended separate consumption baskets for rural and urban areas. The expert committee estimated that 30.9% of the population was below the poverty line in rural areas and 26.4% of the urban population was below the poverty line in 2011-12. In terms of Calories, people consuming below 2090 kcal in urban areas and 2155 Kcal in rural areas were considered poor. In per capita terms, persons spending below ₹47 a day in cities and ₹32 in villages were considered poor. The Committee raised the poverty line based on the average monthly per capita expenditure to Rs 972 from Rs. 816 in rural India and Rs 1,407 from Rs. 1000 in urban India. People get caught In a vicious circle of poverty. Poverty means low income, less education, no job and more poverty.
Which one of the following are categorized as most poor?
Options:
Chronic poor
Ocassionally poor
Either 1 or 2
Both 1 and 2
Correct Answer:
Chronic poor
Explanation:
Chronically poor people experience deprivation over many years, often over their entire lives, and pass poverty on to their children.