Which of the following methods is used to measure poverty? - Infinity Learn by Sri Chaitanya (2024)

FAQs

Which of the following methods is used to measure poverty? ›

Solution: Income and consumption levels are used to measure poverty.

The Census Bureau determines poverty status by using an official poverty measure (OPM) that compares pre-tax cash income against a threshold that is set at three times the cost of a minimum food diet in 1963 and adjusted for family size.

The Income Method is the method used to find the poverty line in India. In this, a baseline of income is decided which is considered as the edge, below which poverty starts. All those whose income falls below the minimum income are considered poor and they come under the Below Poverty Line (BPL) mark.

Relative poverty is measured by the Gini coefficient and Lorenz curve methods. The Public Distribution System (PDS) is effective (ineffective) in reducing the poverty in Andhra Pradesh (united) and Tamil Nadu. Chhattisgarh is the poorest state, with 39.93% of the population living below the poverty line.

The relative deprivation concept of poverty is a direct concept; poverty is understood as visible poverty, that is, a low standard of consumption. The income poverty line is an indirect measure; poverty is established as low income.

This involves working out average or median equalized household incomes in a country. A poverty line is then set, which is a percentage of that average income. Commonly these poverty lines range from 40-70% of household income.

The (better) supplemental poverty measure, which the Census Bureau began reporting in 2011, is mostly a relative measure but has an absolute aspect. It's relative in that it compares poor people's spending on food, clothing, shelter, utilities, phone and internet with that of a median household.

A common relative poverty example is to think of a person who is able to provide for their basic needs, such as food and shelter, but unable to obtain other standard things the people around them have that make life easier and more enjoyable. These things may include: Personal transportation, such as a car or bicycle.

While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirements, etc., are determined for subsistence. These physical quantities are multiplied by their prices in rupees, and thereby the poverty line is arrived at.

Do you think that present methodology of poverty estimation? ›

The present methodology of poverty estimation does not look appropriate. It only takes one factor in view and that is the economic factor. More over it considers about a “minimum” subsistence level of living rather than a “reasonable” level of living. Poverty has many dimensions.

The poverty line is the minimum amount of money a person needs to fulfill the basic necessities of life, like shelter and food. When families are below the poverty line, they qualify for help from the government.

The Engel curve not only suggests how to fix a poverty threshold it also provides a distribution of mean consumption expenditure on food according to income. Thus the Engel curve summarizes the economic equilibrium consumption expenditure on food.

Income level and consumption are the conventional indicators used for measuring poverty.

Poverty line. the official measure of poverty; calculated to include incomes that are less than three times a low-cost food budget.

The HPI measures three dimensions of poverty: income, education, and health. Ans : The HPI combines data on income, education, and health to create a score for each country. The HPI score is based on the percentage of people in a country who live in poverty, are illiterate, and have no access to healthcare.