Question : Statement 1: Poverty line is the minimum level of income necessary to meet basic needs.
Statement 2: It remains constant across countries and does not consider factors such as family size and location.
Option 1: Statement 1 is true, and Statement 2 is true.
Option 2: Statement 1 is true, but Statement 2 is false.
Option 3: Statement 1 is false, but Statement 2 is true.
Option 4: Statement 1 is false, and Statement 2 is false.
Correct Answer: Statement 1 is true, but Statement 2 is false.
Solution : The correct answer is (b) Statement 1 is true, but Statement 2 is false.
Statement 1 is true. The poverty line represents the threshold below which individuals or households are considered to be living in poverty. It is typically
calculated based on the cost of a basket of essential goods and services required for a basic standard of living.
Statement 2 is false. The poverty line can vary across countries depending on factors such as the cost of living, purchasing power parity, and national economic conditions. Additionally, poverty lines within a country can also take into account factors like family size and location to adjust for differences in expenses and regional disparities.
