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

1. A. poverty rates vary from State to State
2. B. price levels vary from State to State
3. C. Gross State Product varies from State to State
4. D. quality of public distribution varies from State to State

Answer: B

Explanation

The Planning Commission methodology for estimating poverty at national and state level was regarded by some as inappropriate in giving a representative picture of the incidence of poverty in the country. The main points of the criticism were: (a) the adjustment procedure; (b) the choice of deflators to represent price changes in the poverty line; (c) application of the same poverty line in all the states, which imply the absence of price differentials across the states; (d) use of a fixed consumption basket over time; and (e) the uniform consumption basket for all the states.