In 1975 the poverty line for a rural person was Rs $300$ per month. In that year $70\%$ of rural households (average size $5$) were below the line. By 1990 the poverty line rose to Rs $400$ and only $45\%$ of rural households were below it. What is the reduction in the effective per‑capita poverty amount (in rupees per month) from 1975 to 1990?

Step-by-step solution

1. Compute the effective per‑capita amount for 1975: $0.70\times 300=210$ rupees.
2. Compute the effective per‑capita amount for 1990: $0.45\times 400=180$ rupees.
3. Find the reduction: $210-180=30$ rupees.
4. Hence the effective per‑capita poverty amount fell by Rs $30$ per month.

Concept tested: Weighted average poverty measure

Published 1 October 2026 · How this solution was prepared and checked