Which of the following methods measures poverty on the basis of income and consumption levels?

Key Points

• Poverty line is the method that measures poverty on the basis of income and consumption levels.
• The poverty line is a threshold level of income or consumption, below which individuals or households are considered to be living in poverty.
• This method helps in identifying the population that requires financial assistance and social welfare programs.
• The poverty line varies from country to country, reflecting the cost of living and economic conditions in each region.

Additional Information

• Poverty measurement is crucial for policy-making and implementing targeted poverty alleviation programs.
• Different countries and organizations may use varying criteria to define and measure the poverty line.
• In India, the poverty line is determined by the Planning Commission based on consumption expenditure surveys conducted by the National Sample Survey Office (NSSO).
• Internationally, the World Bank defines the global poverty line at $1.90 per day (as of 2015), adjusted for purchasing power parity.
• Accurate measurement of poverty helps in assessing the impact of economic policies and development initiatives.