Indian Economy

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

  1. poverty rates vary from State to State
  2. price levels vary from State to State
  3. Gross State Product varies from State to State
  4. Quality of public distribution varies from State to State

Answer

Poverty line depends upon income profile of the population vis-à-vis cost of standard basket of consumption. Thus, it is a function of cost of consumption basket which varies from state to state.

It is not related to GSDP or quality of public distribution services.

The correct option is B.