Countries around the world have many different ways of measuring the poverty line. The European Union and many other countries use 60 percent of median household income as the poverty ‘threshold’. In other words, if a household’s income is less than 60 percent of the median income, this indicates that they are likely to be suffering from hardship and poverty. In contrast, the Indian government examines the costs of income or food requirements. Using the cost of food as a guide, anyone spending more than 32 INR per day in rural villages and 47 INR a day in cities is above the poverty line. Why is the poverty line lower in rural areas compared to urban areas? Discuss why measuring the poverty line using a measure based on food requirements may be problematic. Are there any benefits to looking at the percentage of those below the median income instead? Are there any issues of using this threshold?
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