In a given year in India, official poverty lines are higher in some States than in others because
A
poverty rates vary from State to State
B
price levels vary from State to State
Correct Answer
C
Gross State Product varies from State to State
D
quality of public distribution varies from State to State
Explanation
The correct option is (B) because poverty lines are calculated based on the monetary value of a minimum consumption basket, which fluctuates across states due to variations in the cost of living and price levels. Option (A) is a common misconception because poverty rates are the statistical *result* of applying the poverty line to a population, rather than the factor that determines where the line is set. The core concept being tested is the methodology of poverty estimation in India, specifically how state-specific price indices are used to adjust the poverty threshold.
Poverty and UnemploymentPoverty Measurementofficial poverty linesprice levelsState to State