Question : The poverty line is defined as the minimum level of income required to meet the:
Option 1: Basic needs of a family
Option 2: Luxurious lifestyle of a family
Option 3: Expenses of education and healthcare only
Option 4: Expenses of food and clothing only
Correct Answer: Basic needs of a family
Solution :
The correct answer is (a) Basic needs of a family.
The poverty line represents the income threshold below which individuals or households are considered to be living in poverty. It is determined based on the minimum level of income or consumption required to meet basic needs and maintain a certain standard of living.
Basic needs include essential requirements for survival and well-being, such as food, shelter, clothing, healthcare, education, and other fundamental necessities. The poverty line takes into account the cost of these basic needs and aims to establish a threshold below which individuals or households may face significant deprivation and poverty-related challenges.
It is important to note that the specific components and thresholds of the poverty line can vary across countries and may be adjusted periodically to reflect changing economic conditions, living standards, and social norms.
