Question

explain the two methods to estimate poverty line

Answer 1

The poverty line is estimated by two methods . first, is the income and consumption in this the people living in rural area need ₹816 per person per month and in urban area need ₹1000 per person per month thus they are consisdered as above poverty line.Second mehod is calories requirement.In rural area people require 2400 calories per day per person and in urban area people require 2100 calories per fay per person.

Answer 2

The two most prevalent methods to estimate the poverty line are:

• The traditional method of determining poverty is to establish minimal spending (or income) required to purchase a basket of goods and services essential to meet basic human requirements, which is referred to as the poverty line.

  => 1) Method of Consumption:

• The ideal calorie requirement is used to determine the poverty level in    India.
• In India, the recommended daily calorie requirement is 2400 calories per person in rural areas and 2100 calories per person in urban areas.

  => 2) Income approach:

• For the year 2012, a person's poverty level was set at Rs 816 per month in rural areas and Rs 1,000 in urban areas.