UPSC Prelims 2019 GS Paper I · Q24 of 100 Economy easy

In a given year in India, official poverty lines are higher in some States than in others because

  1. (a) poverty rates vary from State to State
  2. (b) price levels vary from State to State ✓ UPSC's answer
  3. (c) Gross State Product varies from State to State
  4. (d) quality of public distribution varies from State to State

Why the answer is (b)

• India's poverty line is defined as the monthly expenditure needed to buy a fixed basket of goods; since prices differ across States, the same basket costs more in some States than others.

• The Tendulkar and Rangarajan committees therefore fixed State-specific rural and urban poverty lines by adjusting for State price levels — option (b).

• Poverty rates (a) are the outcome, not the basis; Gross State Product (c) and PDS quality (d) do not enter the calculation.

• Hence option (b).

Why the other options are wrong

(a) poverty rates vary from State to State
Poverty rates result from the line; they do not determine it.
(c) Gross State Product varies from State to State
GSDP is not used to set poverty lines.
(d) quality of public distribution varies from State to State
PDS quality does not enter poverty-line calculation.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2019, held on 2 June 2019. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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