Question
State the methods to measure poverty.

Answer

  • There are two ways of knowing the number of people living below poverty line or say methods to measure poverty of a person. They are:
$(1)$ Expenditure method:
  • In this method, expenditure done by a family on various services or commodities is measured. Based on the expenditure made, the government decides the poverty of that family.
$(2)$ Income method:
  • In this method, the income earned by a family is measured and then the poverty level of that family is decided
  • The income method considers family as family of five members.

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