Poverty Class 12 Notes Economics

 Poverty :-

              Poverty refers to the situation where a section of the society is unable to meet the minimum necessities or  requirement of life like food, clothing, housing,  education and health facilities etc.

Poverty Line :-

         Poverty line is the cut-off point on the line of distribution which divides the population or the society of the country into poor and non-poor.

Head - Count Ratio :-

                    Head - count ratio refers to the number of poor people which is estimated as the proportion of the people who are below the poverty line.

Relative Poverty :-

                    Relative poverty refers to the situation wherein the income level of the household or people is a certain percentage below the minimum income that is required to maintain the basic living standards like food, clothing, health care and shelter.

Absolute Poverty :-

                 Absolute poverty is defined as the condition where the income of the people or household is below the necessary level that is required to maintain the basin living standards such as food, clothing, health care and shelter.

Characteristics of Poor People :-

                The main characteristics of poor people are - 

1. Hunger and malnutrition.

2. Poor health.

3. Limited economic opportunities.

4. Debt trap.

5. Lack of credit facilities.

Causes of Poverty in India:-

              The main causes of poverty in India are as follows -

1. Slow economic growth rate.

2. Low per-capita income.

3. Low agricultural productivity.

4. High rate of growth of population.

5. High rate of unemployment.

6. Lack of credit facilities.

7. High price rises.

8. Inefficient resource utilization.

Minimum Calories Intake:-

       In India, the minimum calories consumption should be 2400 calories in rural areas and 2100 calories in urban areas.