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Which of the following affects the poverty line the most in India ?
Level of prices
Production quantum
Per Capita income
Quantum of gold reserve
- Option 1: Level of prices
- Directly affects the cost of living.
- A higher price level means essential goods and services cost more, increasing poverty.
- Option 2: Production quantum
- Higher production can lead to more jobs and income.
- Only indirectly affects the poverty line through economic growth.
- Option 3: Per Capita income
- Represents average income per person.
- Affects overall economic well-being but not directly tied to price levels.
- Option 4: Quantum of gold reserve
- Impacts the economy’s financial stability.
- Doesn’t directly influence poverty levels.
Correct Answer: Option 3 - per capita income
- Directly influences the poverty line due to its impact on income.
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