GS PrelimsGovernance and social sectorPoverty2019

In a given year in India, official poverty lines are higher in some States than in others because

A

poverty rates vary from State to State

B

price levels vary from State to State

C

Gross State Product varies from State to State

D

quality of public distribution varies from State to State

Correct Answer: Option B

Explanation

1. The official poverty line in India represents the minimum expenditure (or income) required to meet basic needs. 2. This minimum expenditure is typically calculated based on a basket of essential goods and services (food, clothing, shelter, etc.). 3. The cost of this basket, and therefore the monetary value of the poverty line, varies significantly across different States due to differences in price levels (cost of living). 4. For example, the cost of essential food items or housing can be much higher in one State compared to another. 5. To account for these spatial variations in the cost of living, official poverty lines are adjusted and are therefore higher in States with higher price levels. 6. Poverty rates (A) are the outcome of applying the poverty line, not the cause of its variation. Gross State Product (C) reflects overall economic output, not directly the cost of basic necessities. While public distribution quality (D) affects welfare, it doesn't directly determine the baseline cost reflected in the poverty line itself.

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