CSEET · Economic and Business Environment · Indian Economy
A poverty line in India based on the minimum consumption expenditure needed to obtain a basic basket of goods and services is an example of which approach to measuring poverty?
This is an absolute poverty measure. It sets a fixed minimum level of consumption expenditure needed for a basic basket of goods and services and counts people below it. Relative poverty compares with others in society, and the Gini coefficient measures inequality rather than poverty.
- AAbsolute poverty measureCorrect
- BRelative poverty measure
- CGini coefficient measure
- DHuman Development Index measure
Explanation
An absolute measure fixes a minimum standard, such as the expenditure needed for a basic basket, and counts people below it. A relative measure compares a person's income with the average or distribution in society. The Gini coefficient measures inequality, not poverty, and the HDI is a broad development index.
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