Question

In a given year in India, official poverty lines are higher in some states than in other because 

(a) Poverty rates vary from state to state

(b) Price levels vary from state to state

(e) Gross state product varies from state to state

(d) Quality of public distribution varies from state to state

Answer 1

Correct option is (b) Price levels vary from state to state

Poverty lines are estimated using the original state- specific poverty lines identified by the Expert Group and updating them to 2004-2005 prices using the Consumer Price Index of Agricultural Laborers (CPIAL) for rural poverty lines and Consumer Price Index for Industrial Workers (CPIIW) for urban poverty lines.