CA Foundation · Business Economics · Indian Economy
In India, poverty has traditionally been measured by estimating the minimum expenditure needed to buy a basic basket of goods and services. What is this expenditure threshold called?
The threshold is called the poverty line. It is the minimum per capita expenditure needed to buy a basic basket of food and essential non-food goods. People spending below it are classed as poor. Gini coefficient and Lorenz curve measure inequality instead.
- APoverty lineCorrect
- BGini coefficient
- CHuman Development Index
- DLorenz curve
Explanation
The poverty line is the minimum level of per capita expenditure or income needed to obtain a basic basket of food and essential non-food items. The Gini coefficient and Lorenz curve measure inequality, and the HDI measures broader human development, not a consumption threshold.
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