Question

The poverty line in Dinanagar is set at Rs.$100$ per capita per day. Five hundred people live in Dinanagar of whom $50$ earn Rs.$30$ per capita per day and another $25$ earn Rs.$80$ per capita per day each.
Everybody else earn more than Rs.$100$ per day per capita. What is the minimum amount that the government of Dinanagar will have to spend to completely eradicate poverty

• A. Rs.$3000$
• B. Rs.$3500$
• C. Rs.$4000$
• D. Rs.$4500$

Answer 1

The correct option is C Rs.$4000$

For complete eradication of poverty each one of 500 people should earn Rs.100 per capita per day.

From given information we can see that 50 people earn Rs.30 per capita per day.So 50 people should earn Rs.70 per capita per day more i.e. 70x50=Rs.3500

And 25 people earn Rs.80 per capita per day.So 25 people should earn Rs.20 per capita per day more i.e.25x20=Rs.500

So total amount is 3500+500=Rs.4000

Option C is correct.