Question 3 - Past Year Questions - 3 Marks - Chapter 3 Class 9 Economics - Poverty as a Challenge - Economics

Explain the two methods to estimate poverty line.

Answer:

Points to be remembered: 

Answer to be written in the exam:

The two methods used to estimate the poverty line  are:

1. Income method:

• This method is used to estimate the poverty line with the help of the minimum income required.
• In the year 2011-12, the poverty line for a person was fixed at Rs 816 per month for rural areas and Rs1000 for urban areas.
• The higher amount for urban areas has been fixed because of the high prices of many essential products in urban centers.

2. Consumption method:

• In this method, the average calorie requirement of a person is multiplied by the current prices.
• The accepted average calorie requirement in India is 2,400  calories per person per day in rural areas and  2,100 calories per person per day in urban areas.