Answer: Different countries use different poverty lines because (a) The calorie requirement of different human races is different depending on their physical condition and dietary habits. (d) The cost of essential items used in calculating poverty line is higher in the developed countries.
Why do different countries use different property lines?
Different countries have different poverty lines because the cost of living varies form country to country.In some countries the income required to live a decent life(above poverty line)is lower than the income required to live a decent life in another country.
Why do all countries in the world do not have same poverty line?
Poverty lines are not the same in all countries. In higher-income countries, the cost of living is higher and so the poverty line is higher, too. $5.48 per person per day — in 32 upper-middle-income countries, such as Brazil and South Africa.
Why does poverty line vary with time and place Why do different countries use different poverty lines?
A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfill the basic needs. What is necessary to satisfy the basic needs is different at different times and in different countries. Therefore, poverty line may vary with time and place.
What is the best measure of poverty?
The most well-known is the Supplemental Poverty Measure (SPM). That measure helps to provide a deeper understanding of poverty and economic conditions by incorporating the effects of tax credits, housing subsidies, food assistance programs, work expenses, and medical costs.
How does poverty line changes with time and place explain in three points?
Those earning less than that or consuming lower than the minimum amounts are considered to be living below the poverty line. Poverty line varies with time and place, owing to the different requirements of the people living at different places and in different countries.
How are poverty lines used in developed countries?
Developed countries use income to measure this notion of welfare. They define a poverty line, which is the income threshold allowing purchasing a bundle of goods giving the minimal welfare level. Everyone whose income is below the poverty line is then considered as poor.
Which is the most relevant measure of poverty?
For example, for low-middle income countries (e.g., India), the $3.20/day 2011 PPP line is designed to be a relevant measure of poverty. For upper-middle income countries (e.g., Peru) the $5.50/day 2011 PPP line is considered to be the most appropriate.
How does relative poverty compare to absolute poverty?
Relative household-level poverty is measured against other households rather than against an absolute standard. A household may be well above the extreme poverty line but could still be relatively less well-off when compared to other households in the country who have a higher standard of living.
Why do we use poverty lines for PPI?
To make it easy to assess and compare the consumption-based welfare of different beneficiary groups, we construct multiple poverty lines for each PPI. Each poverty line is associated with a distinct definition of household poverty and may be relevant to a specific use and context.
