Economy
2019
Poverty and Unemployment

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

B.price levels vary from State to State
A.poverty rates vary from State to State
D.quality of public distribution varies from State to State
C.Gross State Product varies from State to State

Correct Answer: Option B

Official poverty lines vary across states in India primarily due to differences in price levels.

The Tendulkar methodology, used for poverty estimation, considers variations in the cost of living across states.

For example, a Planning Commission report for 2011-12 estimated the national poverty line at Rs. 816 per capita per month for rural areas and Rs. 1,000 per capita per month for urban areas. These figures are adjusted at the state level to reflect inter-state price differentials.

Option (b) is the correct explanation.

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