Answer:
We all live in cluster of houses which can be called as village or a town. It is widely accepted that settlements can be differentiated in terms of rural (village) and urban (town), but there is no consensus on what exactly defines a village or a town.
Although population size is an important criterion, it is not a universal criteria since many villages in densely populated countries in like India and China have population exceeding than some towns of Europe and USA.
In certain countries, urban settlements are defined on the economic basis. For example, In India, towns are called when it has 75% of its work force engaged in non-agricultural activities, whereas in some western countries an urban area is if more than 50% of the economically productive population are engaged in non-agricultural pursuits.
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