Chapter - 6: Poverty: Ultiple Choice Questions (Choose The Correct Option:)
Chapter - 6: Poverty: Ultiple Choice Questions (Choose The Correct Option:)
Chapter - 6: Poverty: Ultiple Choice Questions (Choose The Correct Option:)
a. Rising prices
b. Rising population
c. Low level of GDP
d. All of these
a. poverty line
b. GDP
c. per capita income
d. unemployment
Q5. The people who never move above the poverty line are called:
a. chronic poor
b. non-poor
c. both (a) and (b)
d. (d) none of these
a. food items
b. non-food items
c. both (a) and (b)
d. none of these
Q8. Swarna Jayanti Shahri Rojgar Yojana was started in:
a. 1997
b. 2000
c. 1990
d. 2001
a. 2004
b. 2005
c. 2006
d. 2007
Q14. _______________ was the first to discuss the concept of poverty line in pre-independence India.
a. V.K.R.V. Rao
b. William Digby
c. Findlay Shirrast
d. Dadabhai Naoroji
a. Relative
b. Absolute
c. Both (a) and (b)
d. None of these
Q16. Poverty is a reflection of:
a. inequality
b. unemployment
c. illiteracy
d. none of these
a. Churning poor
b. Chronically poor
c. Occasionally poor
d. Transient poor
a. Relative
b. Absolute
c. Both (a) and (b)
d. None of these
a. Rag pickers
b. Road-side vendors
c. Street cobblers
d. All of these
a. chronic unemployment
b. cyclical unemployment
c. structural unemployment
d. none of these
a. 1995
b. 1998
c. 2008
d. 2010
Q24. Head count ratio refers to:
a. some cut-off point with respect to the individual consumption expenditure per month
b. measurement of poverty in terms of the number of persons below poverty line
c. measurement of poverty across different classes, regions or countries
d. none of these
a. Expert Groups to define the criterion for identifying poor in the country
b. Study Group to define the criterion for identifying poor in the country
c. Task Force on projections of minimum needs and effective consumption demand
d. None of these
a. April 1991
b. December 1995
c. April 1999
d. December 2001
a. Occupation
b. Income
c. Ownership of the assets
d. Both (a) and (c)
Q32. The concept of poverty line in India was first introduced
a. 1955
b. 1962
c. 1979
d. 1989
Q34. Under the Mid-day Meal Scheme, free lunch is supplied to children in:
a. illiteracy
b. unequal distribution of income
c. unemployment
d. none of these
Q38. What is the reason behind the decline in the per-head availability of land for cultivation?
a. Intermittent employment
b. Voluntary employment
c. Casual employment
d. Both (a) and (c)
Q41. The financial assistance is given to urban poor in the form of interest subsidy on the bank loans
under:
Q44. Prime Minister's Employment Generation Programme aims to provide an assistance of:
Q45. which of the following is a objective of Pradhan Mantri Jan Dhan Yojana?
a. 1975
b. 1979
c. 1981
d. 1985
a. Health
b. Transport
c. Energy
d. Communication
Q49. Under National Social Assistance Programme, the government provides assistance in the form
of:
Q50. Owing to poor delivery mechanism, benefits of PAPs have largely been appropriated by the
a. poor
b. non-poor
c. occasionally poor
d. (d) none of these
Answers
1. Read the following statements-Assertion (A) and Reason (R). Choose one of the correct alternatives
given below:
Assertion (A): Transient poor category includes 'churning poor' and 'occasionally poor.
Reason (R): Chronically poor category includes both 'always poor' and 'usually poor.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
Ans. (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A)
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
Ans: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A)
3. Assertion (A): Addressing the problem of poverty through self-employment schemes is the most
effective means of poverty alleviation.
Reason (R): Self-employment schemes improve the rate of participation and also empower the poor.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
Ans: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A)
4. Assertion (A): Casual employment pushes people into indebtedness which reinforces poverty.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
5. Assertion (A): In the determination of poverty line cut-off, consumption is a preferred parameter
than income.
Reason (R): Consumption reflects actual use of the goods and services by an individual, as well as the
type of goods actually used.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
Ans: (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation
of Assertion (A)
6. Assertion (A): India uses the monthly per capita expenditure mechanism to identify the poor.
Reason(R): Monthly per capita expenditure mechanism takes into consideration social factors as well.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
9.Assertion (A): Meeting minimum needs of the poor helps to alleviate poverty through trickle down
effect
Reason. (R): Meeting minimum needs of the poor as an approach to combat poverty focuse on meeting
the basic requirements of the poor.
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
10. Assertion (A): Income is not considered as a criterion while determining the poverty line.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
Ans. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
The concept of Poverty Line in India was introduced on the recommendation of the Task Force on
"Minimum Needs and Effective Consumption Demands" in 1979. The contribution of the Task Force
was to estimate daily per capita calorie requirement separately for rural and urban areas on the basis of
age, sex and activity-specific calorie allowance recommended by the Nutrition Expert Group (1968).
The official approach to measurement of poverty, therefore, started by fixing a standard of calorie
intake and observing the level of per capita consumption expenditure e with which on the average, this
calorie intake level associated. An allowance for non-food consumption also exists in the delineation
of the poverty line though not on normative basis but on a behavioural basis. The poverty line at 1973-
74 (base year) prices for the rural and urban sectors was worked out as 49.09 and 256.64 respectively
utilizing National Sample Survey (5) data on consumer expenditure and using inverse interpolation
method. The poverty line so defined was updated over time by taking care of change in the price
levels.
1. The minimum calorie intake for urban areas has been estimated at:
a. 2.100 calories
b. 2.200 calories
c. 2.300 calories
d. 2.400 calories
a. It does not make any distinction among the different classifications of poor
b. It ignores social factors which play a significant role in perpetuating poverty
c. The Noble Laureate, Amratya Sen has developed Sen Index to address the limitations of
poverty line
d. None of these
3. Which among the following is true about relative poverty?
a. It is a variant of poverty
b. It refers to poverty across different classes, regions or countries
c. It is measured with reference to poverty line
d. Both (a) and (b)
4. The people who keep moving up and down the poverty line fall under the category of:
a. churning poor
b. chronic poor
c. occasionally poor
d. transient poor
Answers
Case – II
Read the following case study carefully and answer the questions 1-4 on the basis of the same
India ranked 162 GNI Per Capita with 1410 US Dollars in 2011 and is named as lower middle income
country under altas method and is ranked 156 with under PPP method an GNI Per Capita of 3590
International Dollars in 2011. Poverty in India is widespread, with the nation estimated to have a third
of the world's poor. In 2010, the World Bank reported that 32.7% of the total Indian people falls below
the international poverty line of US$ 1.25 per day while 68.7% live on less than US$ 2 per day.
Poverty in India is mainly due to lack of proper government policies and the exploitation of the
financially weaker section by the richer class. The main policies outcome of poverty is hunger.
Hunger's seriousness can be understood easily from the fact that every year, 5.8 million children die
from hunger related-causes around the world. (That is, 16,000 children die each day.) Estimates by
NCAER (National Council of Applied Economic Research) show that 80 million households in India
are in income levels of 245,000-90,000 per year. These numbers also are more or less in line with the
latest World Bank's estimates of the "below-the-poverty-line" households that may total about 456
million individuals.
a. NITI Aayog
b. Planning Commission
c. (r) National Sample Survey Organisation
d. (d) None of these
2. Swarna Jayanti Shahri Rozgar Yojana was launched on:
4. The estimation of poverty line, based on Jail Cost of Living, was given by:
a. Dadabhai Naroji
b. Deendayal Upadhyay
c. Mahatma Gandhi
d. R.C. Desai
Answers
1.a)NITI Aayog
2. (c) 1st December, 1997
3 (c) Rise in GDP leads to fall in poverty
4. (a) Dadabhai Naroji
Case –III
Read the following news report carefully and answer the questions 1-4 on the basis of the same:
That the reduction in poverty hasn't been impressive has also been pointed out by an assessment
released in January 2020 by government think-tank NITI Aayog. Going by the states' progress on
poverty reduction. India is far behind the 'zero poverty by 2030 States rather slipped their efforts to
reduce poverty in 2019, in comparison to 2018. The lapsing back of people dimbing above the poverty
line is the most important reason of chronic poverty, according to the CPRC study. It means our
poverty-eradication efforts are not successful in keeping people above poverty line.
a. chronic poor
b. churning poor
c. occasionally poor
d. transient poor
2. Minimum calorie intake for rural person to be above poverty line has been set at:
a. 2,200 calories
b. 2,300 calories
c. 2,400 calories
d. 2,500 calories
3.________________ is one of the ways to estimate the number of people who are below poverty
line.
a. Poverty ratio
b. Sampling
c. Head count ratio
d. None of these
4. Which of the following is not true about governments initiates to alleviate poverty?
a. Integrated Child Development Services Scheme aims to improve the nutritional and health
status of children in the age group of 0-6 years
b. Meeting minimum needs of the poor is an approach that seeks to alleviate poverty through
trickle-down effect
c. MGNREGA which is based on the principle of right to work was launched in 2005
d. None of these
Answers
Case - IV
Read the following news report carefully and answer the questions 1-4 on the basis of the same:
Poverty can be defined as a condition in which an individual or household lacks the financial resources
to afford a basic minimum standard of living. However, the perception regarding what constitutes
poverty may vary over time and across countries. The conventional approach to measuring poverty is
to specify a minimum expenditure (or income) required to purchase a basket of goods and services
necessary to satisfy basic human needs. This expenditure is called the poverty line. The basket of
goods and services necessary to satisfy basic human tiends the Poverty Line Basket (PLB). Poverty
can be measured in terms of the number of people living below this line (with the incidence of poverty
expressed as the head count ratio (HCR the poverty ratio- number of poor to the total population
expressed as percentage). Global countries use different measures for measuring poverty but the
underlying principle remains the same -a poverty line is calculated based on of consumption required
for maintaining some minimum standard of living in the country. However, complexities of measuring
incidence of poverty in a comparable manner over time and across regions have given rise to alternate
approaches also such as measures of the depth of poverty and of its severity,
-De Seema Gaur and Dr. N Srinivasa Rao, Poverty Measurement in India
3. In terms of money, poverty line for rural areas in 2011-12, was defined as consumption worth:
a. 815
b. 816
c. 995
d. 1,000
a. HDI
b. Head count ratio
c. Jail cost of living
d. Sen index
Answers
Case - V.
Read the following case study carefully and answer the questions 1-4 on the basis of the same
Poverty alleviation and employment generation have always been the major thrust areas of the
planning in India. Since independence, the Government of India has taken up various initiatives and
policy interventions in this regard. However, even after more than six decades of economic planning,
nearly 26 per cent of the population is living with poverty and 40 millions are unemployed. These two
are still the major challenges before the policy makers. Although in the post-economic reforms period
Indian economy has grown faster, but its performance has remained dismal on the three counts-
removal of poverty, creating adequate employment
opportunities and reducing economic disparities across regions, sectors, gender and social groups. The
failure of the neo-liberal policy regime in tackling these issues has now become well-established fact.
The de-linking growth with employment has significantly reduced poverty.
Poverty is particularly acute in the rural areas because agriculture has suffered stagnation or decline
over the past decade. The remedy of this malady, therefore, lies not only in achieving faster economic
growth but also in making the growth more pro-poor and inclusive.
a. Inflationary spiral
b. Capital deficiency
c. Demographic dividend
d. Obsolete social institutions
2. The Planning Commission (now NITI Aayog) formed a study group to define the criterion for
identifying poor in:
a. 1956
b. 1962
c. 1979
d. 1989
3. Swarnajayanti Gram Swarozgar Yojana did not replace which of the following?
Answers
1. (c ) Demographic dividend
2. (b) 1962
3. (b) Rural Empowerment Mission
4. (c) Rural Employment Generation Programme