Exercises
1. Describe how the poverty line is estimated in India?
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There are different ways in which the poverty line in India can be estimated. Some of them are as follow:
Income method: In this method, there is a certain minimum income. If the personal income goes below this level then he'her considered below the poverty line and it is assumed that his income is not enough to fulfill the basic needs.
Consumption method: A minimum nutritional food requirement is measured and energy obtained from this food is measured in calories. If the calories requirement is not fulfilled then the person is considered to be below the poverty line.
Expenditure methods: In this method, the poverty line is estimated by using the expenditure of the person as a minimum level of food requirement, clothing, footwear, etc.
Income method: In this method, there is a certain minimum income. If the personal income goes below this level then he'her considered below the poverty line and it is assumed that his income is not enough to fulfill the basic needs.
Consumption method: A minimum nutritional food requirement is measured and energy obtained from this food is measured in calories. If the calories requirement is not fulfilled then the person is considered to be below the poverty line.
Expenditure methods: In this method, the poverty line is estimated by using the expenditure of the person as a minimum level of food requirement, clothing, footwear, etc.
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