Correct Option
The correct option is 2 and 3 only.
Explanation
Economists classify poverty based on the fluctuation of income or consumption levels relative to the poverty line over time. This classification helps in distinguishing between those who are persistently poor and those who fall into poverty temporarily due to specific shocks or seasonal factors.
Statement-wise Analysis
- Statement 1 is Incorrect: The 'Chronic Poor' category includes people who are always poor and those who are usually poor (e.g., landless casual workers). Those who are never poor fall under the category of 'Non-poor', not Chronic Poor.
- Statement 2 is Correct: The 'Churning Poor' are individuals who regularly move in and out of poverty. For example, small farmers or seasonal workers may cross the poverty line during harvest season but fall below it during the lean season.
- Statement 3 is Correct: The broad category of 'Transient Poor' encompasses those who are not persistently poor but experience poverty for short durations. This includes:
- Churning Poor: Those moving in and out of poverty.
- Occasionally Poor: Those who are usually non-poor but may face poverty occasionally due to bad luck or economic shocks.
Key Takeaway
Key Takeaway: Poverty is categorized into three main groups based on duration: Chronic Poor (Always and Usually Poor), Transient Poor (Churning and Occasionally Poor), and Non-Poor (Never Poor).