Question

The poverty line in Dinanagar is set at Rs.100 per capital per day. Five hundred people live in Dinanagar of whom 50 earn Rs.30 per capita per day and another 25 earn Rs.80 per capita per day each.
Everybody else earns more than Rs.100 per day per capita. What is the minimum amount that the government of Dinanagar will have to spend to completely eradicate poverty?
A.Rs.3000
B.Rs.3500
C.Rs.4000
D.Rs.4500

Answer 1

Hint:In this question first calculate the total number of people out of 500 who earns less than the Rs. Per capita per day that is (50 + 25) people and then use the concept that the government will be helping only these people that is total 75 people to eradicate poverty, and thus find the total amount the government has to spend first on the people with Rs30 per capita per day to make them reach Rs.100 per capita per day and then the people with Rs.80 per capita per day to make them reach Rs.100 per capita per day. This will help approaching the problem.

Complete step-by-step answer:
Poverty line in Dinanagar is set at Rs. 100 per capita per day.
Now it is given that five hundred (500) people live in Dinanagar.
In which 50 people earn Rs. 30 per capita per day and another 25 people earn Rs. 80 per capita per day each.
Remaining people earn more than Rs. 100 per day per capita.
So out of 500 people who earn less than Rs. per capita per day is (50 + 25) = 75 people.
Now we have to find out the minimum amount that the government of Dinanagar will have to spend to completely eradicate poverty.
So on 50 people who earn Rs. 30 per capita per day, the government will have to spend (100 – 30) = 70 on per person to eradicate poverty.
And on another 25 people who earn Rs. 80 per capita per day, the government will have to spend (100 – 80) = 20 on per person to eradicate poverty.
So the total amount that the government will have to spend to complete eradicate poverty is
\[ \Rightarrow 50 \times 70 + 25 \times 20\]
Now simplify this we have,
\[ \Rightarrow 3500 + 500 = 4000\] Rs.
So the government will have to spend Rs. 4000 to completely eradicate poverty.
So this is the required answer.
Hence option (C) is the required answer.

Note: The trick point here was that eradicating poverty means that we are taking the people with per capita income less than the poverty line has to be taken to cross this per capita poverty line. It is not necessary to make them beyond 100 to eradicate poverty in fact just making them reach 100 will work too.