Question

what is the method used to measure poverty

Answer 1

A common method used to measure poverty is based on income or consumption levels. A person is considered poor if his or her income or consumption level falls below a given minimum level necessary to fulfill consumption needs.

(a) While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light educational and medical requirement etc are determined for subsistence. These physical quantities are multiplied by their price in rupees.

(b) The present formula for food requirement while estimating the poverty line is based on the desired calorie requirement.

(c) Food items such a cereals, pulses, vegetables, milk, oil, sugar etc together provide these needed calories. The need of calories depends on age and the work done by a person.

(d) The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas.

(e) The calorie requirement of the people in rural areas is higher than that of the people living in urban areas because they do more physical work as compared to urban people.

(f) On the basis of these calculations for the year 2000, the poverty line for a person was fixed at ₹ 328 per month for the rural areas and ₹ 454 for the urban areas.

Despite less calorie requirement, the higher amount for urban areas is because of the high prices of many essential products in urban centers.

Answer 2

Answer:

The methods used to measure poverty are Official Poverty Measure (OPM) and Supplementary Poverty Measure (SPM)

Explanation:

• It is more difficult and complex to estimate the consumption expenditure. Therefore, poverty is measured in terms of income.
• The person is termed as poor, when the person's consumption and income level falls below the "minimum level".
• The method used to measure poverty is based on the Income and consumption level.

Official Poverty Measure:

• The pre-tax cash income against a threshold was measured by using Official Poverty Measure (OPM).
• Income, Family and threshold was the three elements used by the OPM. By using these three elements the poor population was estimated.

Supplementary Poverty Measure:

• Supplementary Poverty Measure is used to measure the poverty statistics and used to determine the means-tested program eligibility.
• It is measured based on the expenditure of food, shelter, clothing and Utilities.

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