In a given year of any federal economy, official poverty lines are higher in some states than in other…
Differences in price levels mean that the same basic consumption basket costs different amounts across states. A money-valued poverty line therefore varies with local…
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In a given year of any federal economy, official poverty lines are higher in some states than in other states because
Answer and explanation
Correct answer B
Differences in price levels mean that the same basic consumption basket costs different amounts across states. A money-valued poverty line therefore varies with local prices; the poverty rate is the share of people below that line, not the price of the basket.
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Karnataka SET (KSET)