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Question

The poverty line basis set for the rural areas in India in 2005-06 is _______________.

A
300 per month
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B
350 per month
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C
368 per month
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D
456 per month
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Solution

The correct option is C 368 per month

The poverty line in India is income based. The poverty line was originally fixed in terms of income or food requirements in 1978. It was stipulated that the calorie standard for a typical individual in rural areas were 2400 calorie and was 2100 calorie in urban areas. Then the cost of the grains that fulfill this normative standard was calculated. This cost was the poverty line. The poverty line in monetary terms during 2005-06 has been estimated at Rs. 368 in rural area and Rs. 560 in urban area as compared to Rs. 328 in rural area and Rs. 454 in urban area in 2000-01.


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