Question

Consider the following Statements about: (1) The only way to determine poverty level is by the monetary value (per capita expenditure) of the minimum calorie intake that was estimated at 2,400 calories for a rural person and 2,100 calories for a person in the urban area. (2) Government uses Monthly Per Capita Expenditure (MPC

Q: Answer-Consider the following Statements about: (1) The only way to determine poverty level is by the monet...

One way is to determine it by the monetary value per capita expenditure of the minimum calorie intake that was estimated at 2,400 calories for a rural person and 2,100 calories for a person in the urban area. Based on this, in 2011-12, the poverty line was defined for rural areas as consumption worth Rs 816 per person a month and for urban areas it was Rs 1,000. Poverty can also be judged through income factor. Most governments use Monthly Per Capita Expenditure MPCE as proxy for income of households to identify the poor.

E as proxy for income of households to identify the poor. (3) Monthly Per Capita Expenditure (MPC
E method groups all the poor together and does not differentiate between the very poor and the other poor. Which of the above statement(s) is/are CORRECT?