Question : The poverty line is defined as:
Option 1: The minimum wage set by the government
Option 2: The level of income below which a person or a household is considered poor
Option 3: The average income in an economy
Option 4: The level of income above which a person or a household is considered rich
Correct Answer:
The level of income below which a person or a household is considered poor
Solution : The correct answer is (b) The level of income below which a person or a household is considered poor.
The poverty line is a threshold that defines the minimum level of income or consumption below which individuals or households are considered to be living in poverty. It is typically set by governments or relevant institutions based on specific criteria and considerations.
The poverty line aims to establish a standard that distinguishes individuals or households who have insufficient resources to meet their basic needs from those who are above the poverty threshold. The specific definition of the poverty line can vary across countries and regions, as it takes into account factors such as the cost of living, household size, and basic necessities.
It's important to note that the poverty line is not equivalent to the minimum wage set by the government, which is a separate policy measure determining the minimum compensation level for employment. The poverty line focuses on income or consumption levels and serves as a measure of poverty rather than a wage standard.
