Economics

What is the criterion for the measurement of poverty line?


ANSWER

Caloric consumption


SOLUTION
The poverty line is calculated based on the caloric requirements of adults (working class) in rural and urban areas. In rural areas it is 2400 calories and in urban areas it is 2100 calories. The poverty line is estimated periodically (normally every five years) by conducting sample surveys. These surveys are carried out by the National Sample Survey Organisation (NSSO). However, for making comparisons between developing countries, many international organisations like the World Bank use a uniform standard for the poverty line: minimum availability of the equivalent of $1 per person per day.
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