MCQ Questions for Class 12 Economics Chapter 4 Poverty with Answers
Check the below NCERT MCQ Questions for Class 12 Economics Chapter 4 Poverty with Answers are prepared based on the latest exam pattern. Educayion singh have provided full chapter notes of I term exam to help students understand the concept very well with easy language download PDF
Question: Poverty estimation in India is carried out by _______
Options:
Answer: NITI Aayog’s task force
Explanation:
The correct answer is NITI Aayogs’s task force .
- Poverty estimation is India is carried out by NITI Aayog’s task force through the calculation of the poverty line based on data captured by the National Sample Survey Office under the Ministry of Statistics and Programme Implementation (MOSPI).
Question :- Unemployment and poverty estimates in India are based on
Options:
Answer:- NSSO household consumption expenditure survey
Question: Which organization collects data on poverty in India?
(a) Planning Commission
(b) NSSO
(c) CSO
(d) Election Commission
Answer: (b) NSSO
Question: Which committee was set up to review the concept of Poverty Line?
Options:
Answer :- Suresh Tendulkar Committee
Explanation:
The correct answer is the Suresh Tendulkar Committee.
- Suresh Tendulkar committee was constituted to review the concept of the Poverty Line in 2005.The committee recommended, shifting away from the calories model.
- Lakdawala committee was constituted to consider methodological and computational aspects of estimation of proportion and number of poor in India.
- Wanchoo committee was constituted to look into industrial development for the backward areas and to recommend fiscal and financial incentives for industries in these areas.
- Dutt committee was constituted to inquire into the working of the licensing system in India.
Question: Which of the following fixes the poverty line in India?
Options:
Answer: Planning Commission (Now Niti Ayog)
Explanation:
The correct answer is the Planning Commission (Now Niti Ayog).
- The Planning Commission estimated levels of poverty in the country on the basis of consumer expenditure surveys conducted by the National Sample Survey Office of the Ministry of Statistics and Programme Implementation.
- A common method used to estimate poverty in India is based on the income or consumption levels and if the income or consumption falls below a given minimum level, then the household is said to be Below the Poverty Line (BPL).
- Poverty estimation in India is now carried out by NITI Aayog’s task force through the calculation of the poverty line based on the data captured by the National Sample Survey Office.
- Poverty line estimation in India is based on the consumption expenditure and not on the income levels
- In India, the first official rural and urban poverty lines at the national level were introduced in 1979 by Y. K. Alagh Committee and official poverty counts began for the first time.
- The Tendulkar poverty line remained the official poverty line for official poverty estimates in 1993-94, 2004-05 and 2011-12.
Options:
Answer: Price levels vary from State to State
Explanation:
The correct answer is Price levels vary from State to State.
- Poverty lines would vary from State to State because of inter-state price differentials.
- According to the Planning Commission, in 2011-12 for rural areas, the national poverty line by using the Tendulkar methodology is estimated at Rs 816 per capita per month in villages and Rs 1,000 per capita per month in cities.
Question: Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the government to “fund the unfunded”. What is the full form of MUDRA?
Options:
Answer: Micro Units Development & Refinance Agency Ltd.
Explanation:-
- The government of India launched the Pradhan Mantri Mudra Yojana (PMMY) scheme to “fund the unfunded”. The aim of the scheme is to bring less funded enterprises to the formal financial system and extending affordable credit to them
- The scheme ensures that a small borrower gets credit from all Public Sector Banks such as PSU Banks, Private Sector Banks, Regional Rural Banks, Foreign Banks, Micro Finance Institutions (MFI), Co-operative banks. PM Modi launched the scheme on 8th April 2015.
- Any Indian Citizen who has a business plan about any income-generating activity like manufacturing, processing, etc can get Micro Units Development & Refinance Agency Ltd. (MUDRA) loans under Pradhan Mantri Mudra Yojana (PMMY) of up to 10 Lakhs. However, it is applicable to the business plans of the non-farm sector.
Important Points:-
- Under the aegis of Pradhan Mantri MUDRA Yojana, loans are given in three categories:
- Shishu: Loans are given up to the need for 50,000/-.
- Kishor: Loans are given above 50,000/- and up to 5 lakh.
- Tarun: It covers loans above 5 lakh and up to 10 lakh.
Question “Absence of minimum income to get the minimum needs of life” is concerned with which of the following types of poverty ?
Options:
Answer :- Absolute poverty
Explanation:
Absolute poverty can be defined as the state in which a subject lacks the means to meet his or her basic needs.
- Such basic needs are often listed in international poverty reduction programs, and usually include food, water, shelter, basic education, and basic medical care.
- Extreme poverty is typically defined as a state in which a person lacks access to all, or several, of the goods needed for meeting these basic needs.
Question: Which of the following statements about absolute poverty is not correct?
(a) It focuses on biological needs.
(b) Levels of absolute poverty are very low in developed countries.
(c) Government policies can help in the elevation of absolute poverty.
(d) It compares the living standard of people
Answer: (d) It compares the living standard of people.
Question:- There are three types of ration cards in India. Which among the following ration cards is for the poorest of the poor people?
Options:
Correct Answer: Antyodaya Card
Explanation:
The correct answer is Antyodaya Card.
- There are three types of ration cards in India:-
- Antyodaya cards for the poorest of the poor
- BPL cards for those below the poverty line
- APL cards for all others
- The rationing system was revived in the wake of an acute food shortage during the 1960s, prior to the Green Revolution.
- The food procured by the FCI is distributed through government-regulated ration shops among the poorer section of the society. This is called the Public Distribution System.
- In order to make Targeted Public Distribution System more focused and targeted towards this category of population, the “Antyodaya Anna Yojana” was launched in December 2000 for one crore poorest of the poor families.
- The scheme also involved identification of one crore poorest of the poor families from amongst the number of BPL families covered under TPDS within the States and providing them food grains at a highly subsidized rate.
- The households carrying Antyodaya cards receive approx 35 kilograms of food grain at subsidised rates.
Question:- Which of the following methods has/have been used to estimate poverty in India?
- Head Count Ratio
- Calorie intake
- Household Consumption Expenditure
- Per Capita Income
Select the correct answer from the codes given below.
Options:
Answer:- Option 4
Question : Which of the following is the poverty determination measure?
(A) Head Count Ratio
(B) Sen Index
(C) Poverty Gap Index
(D) All of these
Answer: (D) All of these
Question : Which state has the maximum number of people living below the poverty line?
Options:
Answer: Uttar Pradesh
Solution:
The correct answer is Uttar Pradesh.
- Uttar Pradesh has the highest number of people living below the poverty line during 2011-12 at 598.19 people below the poverty line out of every lakh.
- It was followed by Bihar at 358.15 people (per lakh), Madhya Pradesh 234.04 people, Maharashtra 197.92 people, and West Bengal at 184.98 people living below the poverty line.
Question: In 2011-12, the highest poverty ratio exists in
(a) Bihar
(b) Madhya Pradesh
(c) Odisha
(d) Uttar Pradesh
Answer: (a) Bihar
Question. What is the below poverty line (BPL) percentage in India as per the 2011 census?
Options:
Correct Answer: 22%
Explanation:
The correct answer is 22%.
- 22% is the below poverty line (BPL) percentage in India as per the 2011 census.
- Hence, option 2 is correct.
- The proportion of people living below the poverty line (BPL) has come down from 37.2 percent in 2004-05 to 22 percent in 2011-12.
Question: What was the percentage of the population below the poverty line in India in 2011-12?
(A) 26.1%
(B) 19.3%
(C) 22%
(D) 32%
Answer: (C) 22% (21.9%)
Question: MGNREGA provides legal guarantee for employment at minimum wages to adult members of a household in a financial year for at least
Options:
Correct Answer: 100 days
Solution:
The correct answer is option 2, i.e. 100 days.
- The primary objective of MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) is to guarantee 100 days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work.
- Unlike earlier employment guarantee schemes, the act aims at addressing the causes of chronic poverty through a rights-based framework
- At least one-third of beneficiaries have to be women.
- Wages must be paid according to the statutory minimum wages specified for agricultural labourers in the state under the Minimum Wages Act, 1948.
- The most important part of MGNREGA’s design is its legally-backed guarantee for any rural adult to get work within 15 days of demanding it, failing which an ‘unemployment allowance’ must be given.
Question: “Mitigating Poverty in Western Rajasthan” (MPOWER) is being implemented with the help of?
Options:
Answer: IFAD
Explanation:
The correct answer is IFAD .
- Mitigating Poverty in Western Rajasthan:
- The Mitigating Poverty in Western Rajasthan (MPOWER) is a poverty reduction initiative launched in Rajasthan.
- It was launched with the help of the International Fund for Agricultural Development (IFAD).
- This scheme was started in 2007.
- The objective of this scheme is to improve the quality of life of poor people, create sustainable livelihood opportunities, employment generation, drought mitigation, etc.
- The development of community institutions is important for services delivery system to work.
Question: Which expert group on Poverty suggested including Education and health in the Poverty line basket along with Food?
Options:
Answer: Tendulkar Taskforce
Explanation:
The correct answer is the Tendulkar Taskforce.
- 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 minimum expenditure is called the poverty line.
- The basket of goods and services necessary to satisfy basic human needs is the poverty line basket or PLB.
- The proportion of the population below the poverty line is called the poverty ratio or headcount ratio (HCR).
- The current methodology for poverty estimation includes education and health in the Poverty line basket along with food is based on the recommendations of an expert group to review the methodology for Estimation of Poverty i.e. the Tendulkar Committee established in 2005.
- The Tendulkar poverty line remains the official poverty line and is the basis of the current official poverty estimates in 1993-94, 2004-05, and 2011-12.
Question : When was the Task Force on Projections of Minimum Needs and Effective Consumption Demand was formed?
(A) 1969
(B) 1979
(C) 1989
(D) 1999
Answer: (B) 1979
Question: What is the full form of “SDG” ?
Options:
Answer: Sustainable development Goals
Solution:
The correct answer is Sustainable development Goals.
Sustainable development Goal:
- The Sustainable Development Goals are the format of 17 goals, given to achieve a better and sustainable future for all given by the Brundtland Commission.
- These goals will help in addressing the challenges we are facing, related to poverty, inequality, climate change, environmental degradation, peace, and justice.
- The SDGs, set in 2015 by the United Nations General Assembly and intended to be achieved by the year 2030, are part of a UN Resolution called “The 2030 Agenda”.
- The targets and indicators for the SDGs are included in the UN Resolution adopted by the General Assembly two years later on 6 July 2017.
Question: NFWP was launched in:
(A) November 2004
(B) December 2003
(C) November 2002
(D) December 2005
Answer: (A) November 2004
The National Food for Work Programme (NFWP), 2004 was launched by minister of rural development, central government on 14 November 2004 in 150 of the most backward districts of India with the objective of generating supplementary wage employment. The programme is open for all Indian poor who are ready to do manual unskilled labour work and are in the need of wage employment. It is implemented as a centrally-sponsored scheme. Food grains are provided to the States free of cost. The transportation cost, handling charges, and taxes on food grains will, however, be the responsibility of the States. It has always been better to supply food grains free of cost instead of distributing money among them. The eligibility criteria was relaxed to provide for both BPL and APL families
Question. Which of the following programmes provide assistance to elderly people are given under?
(A) VAMBAY
(B) NSAP
(C) PMGY
(D) PMRY
Answer: (B) NSAP
NSAP stands for National Social Assistance Programme. NSAP was launched on 15th August, 1995.
Question: Those who regularly move in and out of poverty are called.
(A) Chronically poor
(B) Churning poor
(C) Occasionally poor
(D) Transient poor
Answer: (B) Churning poor
Question: The poverty ratio is the lowest in
(a) Himachal Pradesh
(b) Kerala
(c) Punjab
(d) Gujarat
Answer: (b) Kerala
Question: More than _______ of the world’s poor live in India.
(A) half
(B) one-third
(C) one-fourth
(D) one-fifth
Answer: (D) one-fifth
Question: In 2011-12, poverty line was defined worth ________ as consumption per person a month for rural areas and _______ for urban areas.
(A) ₹816 and ₹1,000
(B) ₹1,012 and ₹1,210
(C) ₹550 and ₹860
(D) ₹860 and ₹673
Answer: (A) ₹816 and ₹1,000
Question: Which of the following is an action adopted under the provision of minimum basic amenities to the people?
(A) Prime Minister’s RozgarYojna
(B) Swarna Jayanti Shahari RozgarYojna
(C) Pradhan Mantri Gramodaya Yojna
(D) National Rural Livelihood Mission
Answer: (C) Pradhan Mantri Gramodaya Yojna
Question: In 2011-12, which state had the highest poverty rate in India?
(A) Odisha
(B) Bihar
(C) Madhya Pradesh
(D) West Bengal
Answer: (A) Odisha
(a) 1990
(b) 1991
(c)1992
(d) 1993
Question: Which of the following people are classified as churning poor?
(a) Who are always below the poverty line
(b) Who regularly move in and out of poverty
(c) Who generally remain above the poverty line but sometimes below it
(d) None of the above
Answer: (b) Who regularly move in and out of poverty
Fill in the blanks with the correct answer:-
Question: Poverty is the inability to secure the ________ consumption requirements for life, health, and efficiency.
Answer: minimum
Question: Absolute poverty determines the minimum physical quantities of the requirement for a subsistence level, with the help of ______
Answer: poverty line
Question: ______ and hunger are the key features of the poorest households.
Answer: Starvation
Question: Task Force on Projections of Minimum Needs and Effective Consumption Demand’ was formed in _________
Answer: 1979
Question: ______ includes those who are usually poor but who may sometimes have relatively more money
Answer: Chronic poor
Question : _________ is the proportion of persons living below the poverty line.
Answer: Head Count Ratio
Question. Amartya Sen, noted Nobel Laureate, has developed an index known as _________
Answer: Sen Index
Question: The proportion of poor to the population in India was ______ percent in 2011-12.
Answer: 22
Question: Under the British, India began to export food grains and, as a result, as many as ________ people died in famines between 1875 and 1900.
Answer: 26 million
Question: There exists a direct relationship between _________ and poverty.
Answer: Unemployment
State whether the following statements are true or false.
Question. More than one-fifth of the worlds poor live in India.
Answer: True
Question. Absolute poverty refers to a lack of resources in relation to different classes, regions, and countries.
Answer: False
Question. Transient poor covers those people who are rich most of the time but may sometimes suffer bad luck are said to be occasionally poor.
Answer: True
Question. The minimum calorie intake was estimated at 2,400 calories for a rural person and 2,100 for a person in the urban area.
Answer: True
Question. Uttar Pradesh, Bihar, Madhya Pradesh, West Bengal, and Orissa account for about 70 percent of India’s poor.
Answer: True
Question. Britain’s main goals from the Raj were to provide a market for British exports.
Answer: True
Question. The poverty ratio estimates the minimum level of income that is considered appropriate to secure basic necessities of life.
Answer: False
Question. The government of India adopted a five-dimensional approach as an attempt to reduce poverty.
Answer: True
Question. National Food for Work Programme aims at improving the food and nutritional status of the poor.
Answer: False
Question. Due to unequal distribution of land and other assets, mostly non-poor appropriate the benefits from direct poverty alleviation programmes.
Answer: True
Question: More than one-fifth of the worlds poor live in India.
Answer: True
Question: Absolute poverty refers to a lack of resources in relation to different classes, regions, and countries.
Answer: False
Question: Transient poor covers those people who are rich most of the time but may sometimes suffer bad luck.
Answer: False
Question: Britain’s main goals from the Raj were to provide a market for British exports.
Answer: True
Question: The poverty ratio estimates the minimum level of income that is considered appropriate to secure basic necessities of life.
Answer: False
Question: The government of India adopted a three-dimensional approach as an attempt to reduce poverty.
Answer: True
Question: National Food for Work Programme aims at improving the food and nutritional status of the poor.
Answer: False
IV. Match the following.
Question
| Column-I | Column-II |
| 1. Poverty | (A) Proportion of persons living below the poverty line |
| 2. Poverty line | (B) Poverty is measured in monetary terms |
| 3. Absolute poverty | (C) Poverty is measured with respect to various classes |
| 4. Relative poverty | (D) Inability to secure the basic needs |
| 5. Headcount ratio | (E) 1999 |
| 6. Food for Work Programme | (F) Divides people into poor and non-poor |
| 7. Swaran Jayanti Gram Swarozgar Yojana | (G) 1970 |
| 8. Sampoorna Grameen Rozgar Yojana | (H) 2001 |
| 9. NFW programme | (I) Never poor |
| 10. Non-poor | (J) 2004 |
Answer:
| Column-I | Column-II |
| 1. Poverty | (D) Inability to secure the basic needs |
| 2. Poverty line | (F) Divides people into poor and non-poor |
| 3. Absolute poverty | (B) Poverty is measured in monetary terms |
| 4. Relative poverty | (C) Poverty is measured with respect to various classes |
| 5. Headcount ratio | (A) Proportion of persons living below the poverty line |
| 6. Food for Work Programme | (G) 1970 |
| 7. Swaran Jayanti Gram Swarozgar Yojana | (E) 1999 |
| 8. Sampoorna Grameen Rozgar Yojana | (H) 2001 |
| 9. NFW programme | (J) 2004 |
| 10. Non-poor | (I) Never poor |
Match the alternatives given in Column II with respective terms in Column I.
Question
| Column I | Column II |
| (i) Chronic poor | (a) Lack of infrastructural facilities |
| (ii) Churning poor | (b) September 2001 |
| (iii) Social cause of poverty | (c) Move in and out of poverty regularly |
| (iv) Economic causes of poverty | (d) Measured in monetary terms |
| (v) Launch of National Food for Work Programme | (e) Always or usually poor |
| (vi) Formation of Task Force on Projections of Minimum Needs and Effective Consumption Demand | (f) Measured with respect to various classes, regions and countries |
| (vii) Absolute Poverty | (g) November 2004 |
| (viii) Relative Poverty | (h) December 2001 |
| (ix) Launch of Sampoorna Grameen Rozgar Yojana | (i) Rapid growth of population |
| (x) Launch of Valmiki Ambedkar Awas Yojana | (j) 1979 |
Answer:
| Column I | Column II |
| (i) Chronic poor | (e) Always or usually poor |
| (ii) Churning poor | (c) Move in and out of poverty regularly |
| (iii) Social cause of poverty | (i) Rapid growth of population |
| (iv) Economic causes of poverty | (a) Lack of infrastructural facilities |
| (v) Launch of National Food for Work Programme | (g) November 2004 |
| (vi) Formation of Task Force on Projections of Minimum Needs and Effective Consumption Demand | (j) 1979 |
| (vii) Absolute Poverty | (d) Measured in monetary terms |
| (viii) Relative Poverty | (f) Measured with respect to various classes, regions and countries |
| (ix) Launch of Sampoorna Grameen Rozgar Yojana | (b) September 2001 |
| (x) Launch of Valmiki Ambedkar Awas Yojana | (h) December 2001 |