Question

Explain the two methods to estimeate the poverty

Answer 1

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.