# Extra Questions 9th Economics Chapter 3 : Poverty as a Challenge

## Multiple Choice Questions (MCQ's)

Question.1. Every _________ person in India is poor.
(a) third
(b) fourth
(c) fifth
(d) sixth
Ans. (b) fourth

Question.2. Vulnerability to poverty is determined by the options for finding an alternative living in terms of
(a) assets
(b) education
(c) health
(d) all the above
Ans. (d) all the above

Question.3. Social exclusion denies certain individuals the
(a) facilities
(b) benefits
(c) opportunities
(d) all the above
Ans. (d) all the above

Question.4. How many people in India live below the poverty line?
(a) 30 crores
(b) 26 crores
(c) 28 crores
(d) 24 crores
Ans. (b) 26 crores

Question.5. Which organisation carries out survey for determining the poverty line?
(a) NSSO
(b) CSO
(c) Planning Commission
(d) None of the above
Ans. (a) NSSO

Question.6. Which social group is most vulnerable to poverty in India?
(a) Scheduled castes
(b) Scheduled tribes
(c) Casual labourers
(d) All the above
Ans. (d) All the above

Question.7. Which two states of India continue to be the poorest states?
(c) Orissa, Bihar
(d) None of the above
Ans. (c) Orissa, Bihar

Question.8. Poverty line in rural areas is (As per 1999 – 2000 prices)
(a) Rs 328
(b) Rs. 370
(c) Rs 454
(d) Rs. 460
Ans. (a) Rs 328

Question.9. Who are the poorest of the poor?
(a) Women
(b) Old people
(c) Children
(d) All the above
Ans. (d) All the above

Question.10. What is the poverty ratio in the state of Orissa?
(a) 50%
(b) 47%
(c) 60%
(d) 57%
Ans. (b) 47%

Question.11. In which state has the high agricultural growth helped to reduce poverty?
(a) Jammu & Kashmir
(b) West Bengal
(c) Punjab
(d) Gujarat
Ans. (c) Punjab

Question.12. In which state have the land reform measures helped to reduce poverty?
(b) Punjab
(c) West Bengal
(d) Kerala
Ans. (c) West Bengal

Question.13. Which state has focused more on human resource development?
(a) Gujarat
(c) Maharashtra
(d) Kerala
Ans. (d) Kerala

Question.14. In which state is the public distribution system responsible for the reduction in poverty?
(c) Both (a) and (b)
(d) None of the above
Ans. (c) Both (a) and (b)

Question.15. What is the main cause of poverty in India?
(a) High income inequalities
(b) Less job opportunities
(c) High growth in population
(d) All the above
Ans. (d) All the above

Question.16. Which of the following is responsible for high poverty rates?
(a) Huge income inequalities
(b) Unequal distribution of land
(c) Lack of effective implementation of land reforms
(d) All the above
Ans. (d) All the above

Question.17. In rural areas, which of the following are not poor?
(a) Landless agricultural workers
(b) Backward classes
(c) Rural artisans
(d) Medium farmers
Ans. (d) Medium farmers

Question.18. Nutritional level of food energy is expressed in the form of
(a) calories per day
(b) wheat consumption
(c) rice consumption per day
(d) none of the above
Ans. (a) calories per day

Question.19. As per Planning Commission, minimum daily intake of calories for determining poverty line for rural area is
(a) 2100
(b) 2400
(c) 1500
(d) none of the above
Ans. (b) 2400

Question.20. Poverty ratio in India as compared to Pakistan is
(a) same
(b) half
(c) two times
(d) two and a half times
Ans. (c) two times

Question.21. What are accepted average calories required in India in urban areas?
(a) 2100
(b) 2400
(c) 2800
(d) 2500
Ans. (b) 2400

Question.22. Who is considered as poor?
(a) A rich landlord
(c) A landless labourer
(d) A teacher
Ans. (c) A landless labourer

Question.23. Which among the following is the method to estimate the poverty line?
(a) Investment method
(b) Income method
(c) Capital method
(d) Human method
Ans. (b) A landless labourer

Question.24. Which state has the largest percentage of poors in India?
(a) Bihar
(b) Orissa
(c) Kerala
(d) Punjab
Ans. (b) Kerala

Question.25. When was National Rural Employment Guarantee Act passed?
(a) September 2005
(b) August 2004
(c) May 2009
(d) None of these
Ans. (a) September 2005

Question.26. Who advocated that India would be truly independent only when the poorest of its people become free of human suffering ?
(a) Mahatma Gandhi
(b) Indira Gandhi
(c) Jawaharlal Nehru
(d) Subhash Chandra Bose
Ans. (a) Mahatma Gandhi

Question.27. Which of the following programmes was launched in the year 2000?
(a) National Rural Employment Guarantee Act
(b) Prime Minister Rojgar Yojana
(c) Swarna Jayanti Gram Swarozgar Yojna
Ans. (d) Pradhan Mantri Gramodaya Yojana

Question.28. Who do not come under the category of urban poor?
(a) The casual workers
(b) The unemployed
(c) The shopkeepers
(d) Rickshawpullers
Ans. (c) The shopkeepers

Question.29. How many percent of Indian people were poor in the year 2000?
(a) 36%
(b) 46%
(c) 26%
(d) 29%
Ans. (c) 26%

Question.30. Which scheme was started in 1993 to create self-employment opportunities for educated unemployed youth in rural areas and small towns?
(a) Prime Minister Rojgar Yojana
(b) National Rural Employment Guarantee Act
(c) Rural Employment Generation Programme
(d) Swarnajayanti Gram Swarojgar Yojana
Ans. (a) Prime Minister Rojgar Yojana

Question.31. For how many days NREGA provides employment?
(a) 70
(b) 80
(c) 90
(d) 100
Ans. (d) 100

Question.32. Which one of the social groups are vulnerable to poverty?
(a) Scheduled caste
(b) Urban casual labour
(c) Rural agricultural households
(d) All the above
Ans. (d) All the above

Question.33. By which year governments are aiming to meet the Millennium Development Goals including halving the rate of global poverty?
(a) 2011
(b) 2015
(c) 2045
(d) 2035
Ans. (b) 2015

Question.34. Which one is not the major causes of income inequality in India?
(a) Unequal distribution of land
(b) Lack of fertile land
(c) Gap between rich and the poor
(d) Increase in population
Ans. (b) Lack of fertile land

Question.35. In which of the following countries did poverty actually rise from 1981 to 2001?
(a) Sub-Saharan Africa
(b) India
(c) China
(d) Russia
Ans. (a) Sub-Saharan Africa

Question.36. The calorie requirement is higher in the rural areas because :
(a) they do not enjoy as much as people in the urban areas.
(b) food items are expensive.
(c) they are engaged in mental work.
(d) people are engaged in physical labour.
Ans. (d) people are engaged in physical labour.

Question.37. Which of the following is an indicator of poverty in India?
(a) Income level
(b) Illiteracy level
(c) Employment level
(d) All of these
Ans. (d) All of these

Question.38. Which of the following is not a valid reason for the poverty alleviation programme in India?
(a) Lack of proper implementation
(b) Lack of right targeting
(c) Corruption at the highest level
(d) Overlapping of schemes
Ans. (c) Corruption at the highest level

Question.39. Which industry suffered the most during colonial period?
(a) Jute
(b) Textile
(c) Indigo
(d) All the above
Ans. (a) Jute

Question.40. Poverty ratio in which of the following states is above the national average?
(a) West Bengal
(d) Karnataka
Ans. (a) West Bengal

Question.41. Which of the following is not considered a social indicator of poverty?
(a) Less number of means of transport
(b) Illiteracy level
(d) Lack of job opportunities
Ans. (a) Less number of means of transport

Question.42. Full form of NFWP is :
(a) National Federation for Work and Progress
(b) National Forest for Wildlife Protection
(c) National Food and Wheat Processing
(d) National Food for Work Programme
Ans. (d) National Food for Work Programme

Question.43. Which country of South-East Asia made rapid economic growth resulting in a significant decline in poverty?
(a) India
(b) China
(c) Nepal
(d) Pakistan
Ans. (b) China

Question.44. In which part of the world poverty has remained the same during 1981 to 2001?
(a) South Asia
(b) Sub-Saharan Asia
(c) China
(d) Latin America
Ans. (d) Latin America

Question.45. Which of the following states has the poverty ratio below the national average?
(a) West Bengal
(c) Assam
(d) Maharashtra
Ans. (d) Maharashtra

Question.46. The current anti-poverty programme consists of two planks. They are:
(a) Socio-economic reasons and public distribution system.
(b) Promotion of economic growth and targeted anti-poverty programme.
(c) Anti-poverty programme and public distribution system.
(d) None of the above.
Ans. (b) Promotion of economic growth and targeted anti-poverty programme.

Question.47. According to World Bank, poverty is measured by:
(a) People living below Rs. 100 per day
(b) People living below 1$per day (c) People living below Rs. 550 per month (d) None of the above Ans. (b) People living below 1$ per day

Question.48. Kerala has tried to control poverty by:
(a) Investing in human resource
(b) Investing in medical science
(c) Investing in infrastructure
(d) None of the above
Ans. (a) Investing in human resource

Question.1. Explain how poverty begets more poverty.
Ans. Poverty begets more poverty. It is both a cause as well as consequence of poverty. A poor country cannot save much out of its national income. As a result, it suffers from capital deficiency which adversely affects the level of production and income in the country.

Question.2. Explain the concepts of :
(a) Social exclusion (b) Vulnerability
Ans. (a) Social Exclusion : According to this concept, poverty must be seen in terms of the poor who have to live only in a poor surroundings with other poor people. Poor people are excluded from better surroundings with better-off people. For example, in India people belonging to certain castes are excluded from equal opportunities.
(b) Vulnerability : There is a greater possibility of remaining poor in case of certain communities (such as members of a backward classes, widows, physically handicapped persons). These groups of people face greater risks at the time of natural disasters (earthquakes, tsunami). Thus vulnerability describes the greater possibility of being adversely affected in comparison of other people in odd times.

Question.3. Who are poor in the rural areas?
Ans. In the rural sector, the poor include farm labourers, small and marginal farmers, rural artisans, backward classes and backward tribes. They lack basic literacy and skills. They are unable to find alternative employment elsewhere. They generally become victims of village moneylenders.

Question.4. Who are poor in the urban sector?
Ans. In the urban sector, the poor consist of rickshaw-pullers, cobblers, street vendors, petty self employed persons, domestic servants and low-paid workers working in factories or in other occupations. They reside in poor localities where the conditions of living are very poor.

Question.5. Explain how the low level of education can be held responsible for poverty in India.
Ans. Low level of education of the poor is a major cause behind their poverty. Poor people are illiterate. Because of their illiteracy, Indian farmers have failed to learn new methods of cultivation. Even the village moneylenders succeed in cheating them quite easily. Moreover, poor parents are not able to send their children to schools. Because of their illiteracy, poor people are employed as unskilled workers and are paid low wages.

Question.6. Suggest some measures to reduce regional poverty.
Ans. Several states of India like Orissa, Bihar, Madhya Pradesh, Uttar Pradesh, Nagaland, etc., are economically very poor. To remove this regional poverty the following measures may be suggested :
(a) More Central assistance and grants should be given to backward states.
(b) Special concessions may be given for investments in backward areas.
(c) Public sector enterprises should be set up in backward states.

Question.7. Discuss any three measures to reduce poverty in India.
Ans.

1. More Industrialisation : In order to remove poverty and unemployment, especially in cities, more and more industries are to be set up.
2. Improvement in Agriculture : While latest methods should be adopted in improving agriculture, steps should also be taken so that land is provided to the tiller and it is not concentrated in the hands of few rich farmers and landlords.
3. Education : Education is must for removing any evil, including poverty and unemployment. It must be made cheaper so that every person could get it easily.

Question.8. Discuss any three government programmes for poverty alleviation.
Ans.

1. Prime Minister’s Rojgar Yojana (PMRY) : These schemes have been started for the welfare of the educated unemployed in urban areas. Youth belonging to the weaker sections of society are given priority.
2. Employment Assurance Scheme (EAS) : These were launched in 1999 to create wage employment to families below poverty line and to improve the quality of life in the rural areas.
3. Jawahar Gram Samridhi Yojana (JGSY) : The objective of this programme is to generate gainful employment for the unemployed and underemployed men and women in rural areas, community and social assets are created such as soil conservation work.

Question.9. Give brief account of inter-state disparities of poverty in India.
Ans.

1. Proportion of poor people is not the same in every state.
2. In 20 states and union territories, the poverty ratio is less than national average.
3. In the states of Orissa, Bihar, Assam, Tripura and Uttar Pradesh poverty percentage is more than 35. So poverty is serious problem in these states. Along with rural poverty, urban poverty is also high in these states.
4. While in the states like Kerala, Jammu and Kashmir, Tamil Nadu, Andhra Pradesh there is significant decline in poverty.
5. States like Punjab and Haryana have succeeded in reducing poverty with the help of high agricultural growth rates.
6. In West Bengal, land reform measures have helped in reducing poverty.

Question.10. Mention any three features of the National Rural Employment Guarantee Act, 2005.
Ans. National Rural Employment Guarantee Act, 2005 was passed in September 2005 with the following features :-

1. It provides 100-days assured employment every year to every rural household with the reservation for one-third of the proposed jobs for women.
2. The central government will establish a National Employment Guarantee Fund for Women and state governments will establish State Employment Guarantee Funds for implementation of the scheme.
3. If an applicant is not provided employment within 15 days, he/she will get daily unemployment allowance.

Question.11. How is the regular growth of population one of the major causes of poverty?
Ans. Problem of high population growth is the major hurdle for economic growth in Indian economy. This results in less job opportunities and low growth rate of incomes. These factors in combination make the growth rate of per capita income very low. The failure on two fronts – promotion of economic growth and population control – perpetuates the cycle of poverty. Rapid growth of population increases the number of job seekers and job opportunities are again limited. So population is one of the major causes of poverty in India.

Question.12. What are the main causes of poverty in India?
Ans. Main causes of poverty in India are :-

1. Huge income inequalities makes it difficult for the government policies to implement properly for poverty elimination. Therefore income inequality is a major cause of poverty in India.
2. Exploitation of traditional Indian handicrafts and textile industries by British colonial administration is another major cause of poverty.
3. In order to fulfil social obligations and observe religious ceremonies, the poor spend a lot of money. Poor people borrow money for different reasons and become the victims of indebtedness.

Question.13. How the policies of colonial government were responsible for poverty in India?
Ans. Policies of colonial government is one of the historical reasons of poverty after and at the time of British colonial administration. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles. The low rate of growth persisted until the nineteen eighties. This resulted in less job opportunities and low growth rate of incomes. This was accompanied by a high growth rate of population. The two combined to make the growth rate of per capita income very low. The failure at both the fronts – promotion of economic growth and population control – perpetuated the cycle of poverty.

Question.14. Explain three ways in which poverty can be estimated in India.
Ans. While determining the poverty line in India, a minimum level of food requirement, clothing, footwear, fuel and light, educational and medical requirement etc. are determined for subsistence.

1. The calorie requirement depending upon the age, sex, area and type of work is the way of estimating poverty. Average calorie requirement in India is 2400 per person per day in rural areas and 2100 per person per day in urban areas.
2. Monetary expenditure per capita needed is also a way of estimating poverty. In the year 2000, poverty line for a person was fixed at Rs 328 per month for the rural areas and Rs. 454 for the urban areas.
3. A uniform standard for poverty line is also used, which is given by international organisations like World Bank. This is equivalent of \$ 1 per person per day.

Question.15. Explain the principal measures taken in Punjab, Kerala and Andhra Pradesh to reduce poverty.
Ans.
(i) The principal measures taken in Punjab to reduce poverty is increasing the agricultural growth rates.
(ii) Kerala focused more on human resource development to reduce poverty.
(iii) Andhra Pradesh focused on public distribution of foodgrains to reduce poverty.

Question.16. ‘‘In poor families all suffer but some suffer more than others.’’ Explain.
Ans. Analysis of poverty on the basis of social exclusion and vulnerability shows that there are people in our economy who suffer more than others. Socially excluded people due to caste discrimination are excluded even from facilities, benefits and opportunities that others enjoy.
Vulnerability brings greater risks to the people at the time of natural disasters or terrorism etc.
Vulnerable groups lack social and economic ability to handle risks.

Question.17. What is poverty line? Give the income for poverty line fixed for the rural and urban areas in India according to 2000.
Ans. A person is said to be poor if his or her income or consumption level falls below a given ‘‘minimum level’’ necessary to fulfil basic needs. Each country uses an imaginary line that is considered appropriate for its existing level of development and its accepted minimum social norms.
In the year 2000, a family of five members living in rural areas and earning less than about Rs 1640 per month were below the poverty line, whereas in urban areas earning less than about 2270 per month in similar family were below the poverty line.

Question.18. ‘‘There is a strong link between economic growth and poverty reduction.’’ Explain.
Ans. Economic growth widens the opportunities and provides the resources needed to invest in human development. This also encourages people to send their children, including the girl child, to schools in the hope of getting better economic returns from investing in education. Since eighties, India’s economic growth has been one of the fastest in the world. The growth rate jumped from the average of about 3.5% a year in the 1970s to about 6% during the 1980s and 1990s which significantly helped in the reduction of poverty.

Question.19. Give one positive and one negative side of poverty conditions in India, and mention the major weaknesses of poverty alleviation programmes.
Ans. Positive aspect: India’s economic growth is one of the fastest in the world which helps in reducing poverty.
Negative aspect: Large number of poors live in villages and dependent upon agriculture where growth is much below expectation.
Weakness of Poverty alleviation programme: Lack of proper implementation and right targetting with lots of over lapping schemes.

Question.1. What are the main features of poverty in India?
Ans. Features of Poverty in India : Following are the main features of poverty in India.

1. Declining Trend : The proportion of people below poverty line in India had variations. Poverty ratio increased during the decade of the 1970s. It decreased sharply during the decade of the 1980s. During the decade of 1990s, there was first a rise following the period of economic reforms and then a fall in the incidence of poverty. Since 1993-94, the total number of the poor shows a declining trend.
2. Inter-State Variations : Poverty is not equally distributed through the country. A recent study shows that more than 90 per cent of India’s rural poor live in the states of Andhra Pradesh, Orissa, Bihar, Madhya Pradesh, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal. Further, 50 per cent of India’s rural poor live in three states (namely, Bihar, Madhya Pradesh and Uttar Pradesh). As against this, the poverty ratio in the states of Jammu and Kashmir, Gujarat, Kerala, Punjab and Haryana is quite low.
3. Nature of Poverty : Poverty is visible both in our rural and urban areas. The rural poor consist of people of low castes and tribal groups. The major group of the poor include landless agricultural labourers, small and marginal farmers, rural artisans, etc.
In the urban sector, the poor include largely unemployed, underemployed or persons employed in low productivity occupations such as rickshawpullers, cobblers, street vendors.

Question.2. Describe in brief the important poverty alleviation programmes undertaken by the Government of India.
Ans. Poverty Alleviation Programmes of India : The important poverty alleviation programmes which are in operation in rural and urban areas are :

1. Prime Minister Rojgar Yojana (PMRY) : PMRY was launched on 2 October 1993. The aim of this programme is to create self-employment opportunities for educated youth in rural areas and small towns. They are helped in setting up small business and industries.
2. Swarna Jayanti Gram Swarojgar Yojana (SGSY) : SGSY was launched on 1 April, 1999. It aims at promoting enterprises at the village level. It helps the rural people to organise themselves into self-help groups. The objective of SGSY is to bring the existing
poor families above the poverty line by providing them income generation assets through a mix of bank credit and government subsidy.
3. Pradhan Mantri Gramodaya Yojana (PMGY) : PMGY was introduced in 2000. Its objective is to focus on village level development in five critical areas, that is, primary health, primary education, rural shelter, rural drinking water and rural roads. As a result of this, the quality of life of rural people will improve.
4. Sampoorna Grameen Rojgar Yojana (SGRY) : This programme was launched in September 2001. The objectives of this scheme are :
(a) to provide wage employment along with food security in the rural areas.
(b) to create durable community, social and economic assets. The ongoing Employment Assurance Scheme and JGSY would be merged with SGRY.
5. National Rural Employment Guarantee Act (NREGA) : NREGA was passed in September 2005. The Act provides for 100-days assured employment to every rural household in 200 districts. Later, the scheme will be extended to 600 districts.
However, the results of these programmes have not been very effective. One of the major reasons for their less effectiveness is the lack of proper implementation and right targeting. Also, there has been overlapping of schemes. Therefore, the major emphasis in recent years is on their proper monitoring.

Question.3. What is meant by ‘vulnerability’ to poverty? Which economic categories are more vulnerable to poverty in India?
Ans. Vulnerability to poverty : It is a measure which describes the greater probability of certain communities or individuals (such as widow or a physically handicapped person) of becoming or remaining poor in coming years.
Economic categories more vulnerable to poverty in India : Schedule tribes, urban casual labourers, rural agriculture labourers, scheduled castes are major economic groups, which are more vulnerable to poverty. Among these, scheduled tribes contribute to 51% of poverty in India which average Indian poverty ratio is 26.

Question.4. How is the illiteracy responsible for Poverty in India? Explain.
Ans. Illiteracy is responsible for poverty in India as it causes the vicious circle of life where a poor remains poor. Educated parents teach their children and make them more productive towards the economic growth. They are more conscious about the education, health and hygiene of their children. On the other hand, illiterate parents are not aware and conscious about providing better education, health and hygiene facilities to their children. Thus they do not look for other occupational facilities other than traditional one, therefore remain poor.

Question.5. How can poverty be reduced in future in India? Suggest any four points.
Ans. Poverty can be reduced in the following ways:-
(i) Increasing empowerment of women and the economically weaker sections of society.
(ii) Fostering the economic growth.
(iii) Increasing the stress on universal free elementary education.
(iv) Caste and gender discrimination to be avoided.
(v) Improving health care, education and job security.
(vi) Removing unequality of wealth among people.

Question.6. Mention the two planks on which the current anti-poverty strategy of the government is based. Why were the poverty alleviation programmes not successful in most parts of India?
Ans. The current anti-poverty strategy of the government is based broadly on two planks:
(i) Promotion of economic growth.
(ii) Targeted anti-poverty programmes.
The results of poverty alleviation programmes have been mixed. The major reasons for less effectiveness are :-
(i) Lack of proper implementation and right targeting.
(ii) Overlapping of a number of schemes.
They lack proper monitoring and therefore the benefits of these schemes do not fully reach out to the deserving poor.

Question.7. NREGA 2005 is an important anti-poverty programme. Explain.
Ans. NREGA stands for National Rural Employment Guarantee Act, 2005. Following things were included in the scheme :
(i) It aims at providing 100-days assured employment every year to every rural household.
(ii) It initially started for 200 districts but later on extended to 600 districts.
(iii) One-third of the proposed jobs were reserved for women.
(iv) The Central government established National Employment Guarantee Funds and state government established State Employment Guarantee Funds for implementation of the scheme.
(v) If an applicant is not provided employment within fifteen days he/she will be entitled to a daily unemployment allowance.

Question.8. Social exclusion can be both a cause as well as consequence of poverty. Explain.
Ans. Social exclusion can be seen in the terms of poors who have to live only in a poor surrounding with other poor people. Poor people are excluded from better surroundings with better-off people. For example, in India people belonging to certain lower castes (i.e., Scheduled Castes) are excluded from equal opportunities. Poor people of certain castes have to live in a separate locality and are excluded from mixing with better-off people. Due to such discrimination These people are deprived of better employment and growth opportunities. Social exclusion thus lead to poverty and can cause more damage than having a very low income.

Question.9. Who are the most vulnerable as far as poverty is concerned? How have the states of West Bengal, Punjab and Tamil Nadu tackled poverty?
Ans. The most vulnerable groups to poverty are :
(i) Scheduled Castes and Scheduled Tribes
(ii) Rural agricultural labour
(iii) Urban casual labour.
States tackled poverty in the following ways :-
1. West Bengal :- Land reform measures have helped in reducing poverty.
2. Punjab :- Reduce poverty with high growth rates of agriculture.
3. Tamil Nadu :- Public distribution of foodgrains has reduced the poverty.

error: Content is protected !!