Question

Which of the following statements relating to poverty in India are correct?
$1$. The concept of poverty line is helpful in assessing the extent of absolute poverty in the country.
$2$. Poverty line helps us to assess relative as well as absolute poverty.
$3$. Poverty line should change with changes in the price level.
$4$. Relative poverty can exist even in the absence of absolute poverty.
Select the correct answer using the codes given.

• A. $1,3$ and $4$
• B. $1$ and $4$
• C. $2$ and $3$
• D. $2,3$ and $4$

Answer 1

Answer: (A)

$1,3$ and $4$

In India, the concept of poverty line is helpful in assessing the extent of absolute poverty in the country. Poverty line should also change with variation in price level but there is no relation between absolute and relative poverty. Relative poverty, when we speak in terms of relatively poor or rich, we make pairwise comparison. Person A may be poorer than or richer than or equal to person B by the scale of criterion(say income) which we take into account for comparison, call it relative poverty or inequality.