A level of expenditure at which minimum food needs are met is calleda)...
Food is the most basic need of all the out basic requirements as it provides necessary nutritional standard expressed in terms of calorie. A level of expenditure at which minimum food needs are met is called cut-off expenditure and is called the poverty line expenditure.
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A level of expenditure at which minimum food needs are met is calleda)...
Explanation:
The level of expenditure at which minimum food needs are met is called poverty line expenditure. It is the minimum level of income required to achieve an adequate standard of living. It is also referred to as the poverty line. The poverty line is used as a measure of poverty by governments and international organizations.
Factors influencing poverty line expenditure:
The poverty line expenditure varies from country to country and is influenced by factors such as:
1. Cost of living: The cost of living varies from place to place. The poverty line expenditure is higher in urban areas compared to rural areas due to the higher cost of living.
2. Household size: The poverty line expenditure varies with the size of the household. A larger household requires a higher level of expenditure to meet their minimum food needs.
3. Food habits: The poverty line expenditure is influenced by the food habits of the people. Vegetarian food is cheaper compared to non-vegetarian food.
4. Inflation: The poverty line expenditure is affected by inflation. As the prices of goods and services increase, the poverty line expenditure also increases.
5. Standard of living: The poverty line expenditure is influenced by the standard of living. People with a higher standard of living require a higher level of expenditure to maintain their standard of living.
Uses of poverty line expenditure:
The poverty line expenditure is used for various purposes such as:
1. Measuring poverty: The poverty line expenditure is used to measure the number of people living below the poverty line.
2. Designing welfare programs: The poverty line expenditure is used to design welfare programs such as food subsidies, employment programs, and housing programs.
3. Allocating resources: The poverty line expenditure is used to allocate resources for poverty alleviation programs.
4. Evaluating poverty alleviation programs: The poverty line expenditure is used to evaluate the effectiveness of poverty alleviation programs.
In conclusion, poverty line expenditure is the level of expenditure at which minimum food needs are met. It is influenced by various factors such as cost of living, household size, food habits, inflation, and standard of living. The poverty line expenditure is used for measuring poverty, designing welfare programs, allocating resources, and evaluating poverty alleviation programs.