Question

discuss the two methods to estimate poverty Line

Answer 1

Poverty line refers to the estimated minimum income required to fulfill the basic necessities of life.

There are two common methods to estimate the poverty line. They are:

·         Income method: As per government guidelines if the income of a person is below the set levels which is 40500 to 49000 in rural areas and 51500 to 60000 in urban areas the person is considered poor.

·         Consumption method: The government has also set a limit for calorie intake, if a person is unable to consume the expected level due to financial constraints the person is considered to be poor.

Answer 2

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