Q1. How is the poverty line estimated in India?
a) Based on income level
b) Based on consumption and income levels
c) Based on the level of education
d) Based on employment status
Answer: b) Based on consumption and income levels
Explanation: In India, the poverty line is estimated based on income or consumption levels. A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfill basic needs.
Q2. What is the average calorie requirement used in India while estimating the poverty line?
a) 2400 calories per person per day in rural areas and 2100 in urban areas
b) 2100 calories per person per day in both rural and urban areas
c) 2500 calories per person per day in rural areas and 2200 in urban areas
d) 2000 calories per person per day in rural areas and 1800 in urban areas
Answer: a) 2400 calories per person per day in rural areas and 2100 in urban areas
Explanation: The calorie needs in India for estimating the poverty line are set at 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas, reflecting the higher physical activity in rural areas.
Q3. Which groups are most vulnerable to poverty in India?
a) Urban industrial workers
b) Rural agricultural laborers and urban casual labor households
c) Educated urban households
d) Small-scale entrepreneurs
Answer: b) Rural agricultural laborers and urban casual labor households
Explanation: Rural agricultural labor households and urban casual labor households are among the most vulnerable groups to poverty in India. This vulnerability is due to erratic income and lack of stable employment.
Q4. What was the poverty line for a person in rural areas in India for the year 2011-12?
a) Rs 816 per month
b) Rs 1000 per month
c) Rs 500 per month
d) Rs 1200 per month
Answer: a) Rs 816 per month
Explanation: For the year 2011-12, the poverty line in India was fixed at Rs 816 per month for rural areas. This amount was estimated based on the monetary expenditure needed to buy the calorie requirements.
Q5. Which Indian state has the highest poverty ratio as per the 2011 Census?
a) Kerala
b) Punjab
c) Bihar
d) Gujarat
Answer: c) Bihar
Explanation: As per the 2011 Census, Bihar had the highest poverty ratio among Indian states. This reflects the state’s challenges in dealing with poverty.
Q6. What is ‘social exclusion’ in the context of poverty?
a) The process of people becoming poor due to economic downturns
b) The process through which individuals or groups are excluded from facilities that others enjoy
c) The inability to access healthcare
d) The lack of educational facilities in rural areas
Answer: b) The process through which individuals or groups are excluded from facilities that others enjoy
Explanation: Social exclusion refers to a process where certain groups are denied access to facilities, benefits, and opportunities that others enjoy, leading to their further impoverishment and marginalization.
Q7. What is the significance of the ‘vulnerability’ concept in poverty analysis?
a) It measures the economic wealth of a community
b) It indicates the likelihood of communities or individuals becoming or remaining poor in the future
c) It reflects the employment rates in rural areas
d) It is used to calculate the national poverty line
Answer: b) It indicates the likelihood of communities or individuals becoming or remaining poor in the future
Explanation: Vulnerability in poverty analysis refers to the measure of the risk of certain communities or individuals becoming or remaining poor in the future. It considers factors like employment opportunities, health, and exposure to disasters.
Q8. What is the primary objective of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005?
a) To provide a minimum of 100 days of wage employment to rural households
b) To offer free education to children in rural areas
c) To ensure free healthcare in rural regions
d) To provide agricultural subsidies to farmers
Answer: a) To provide a minimum of 100 days of wage employment to rural households
Explanation: The Mahatma Gandhi National Rural Employment Guarantee Act, 2005, aims to provide at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
Q9. What is a significant cause of high poverty rates in India?
a) High technological advancement
b) Unequal distribution of land and other resources
c) Excessive urbanization
d) Overemphasis on service sector
Answer: b) Unequal distribution of land and other resources
Explanation: A major cause of high poverty rates in India is the unequal distribution of land and other resources. This inequality has led to a concentration of wealth and resources in the hands of a few, while a large portion of the population remains poor.
Q10. What does the term ‘inter-state disparities’ in poverty indicate?
a) Differences in poverty levels between urban and rural areas
b) Variations in poverty ratios among different countries
c) Variations in poverty ratios among different states within India
d) Income differences between different social groups
Answer: c) Variations in poverty ratios among different states within India
Explanation: Inter-state disparities in poverty refer to the differences in poverty ratios among various states within India. These disparities highlight that some states are more successful in poverty reduction than others.
Q11. What was the poverty ratio in India in 2011-12, as per the Tendulkar Methodology?
a) About 45%
b) About 37%
c) About 22%
d) About 30%
Answer: c) About 22%
Explanation: According to the Tendulkar Methodology, the poverty ratio in India in 2011-12 was about 22%. This indicated a significant reduction in poverty compared to previous years.
Q12. Which demographic is most likely to experience poverty in India?
a) The urban middle class
b) Rural agricultural laborers
c) Educated urban youth
d) Small business owners
Answer: b) Rural agricultural laborers
Explanation: Rural agricultural laborers are among the demographics most likely to experience poverty in India. This group often faces unstable employment, low wages, and lack of access to basic services and resources.
Q13. What international standard does the World Bank use for poverty line comparisons among countries?
a) Minimum availability of $1.90 per person per day
b) Minimum income of $2.50 per person per day
c) Minimum wage of $3.00 per person per day
d) Minimum expenditure of $2.00 per person per day
Answer: a) Minimum availability of $1.90 per person per day
Explanation: For international comparisons, the World Bank uses a uniform standard for the poverty line: minimum availability of the equivalent of $1.90 per person per day.
Q14. Which social groups are more vulnerable to poverty in India?
a) Scheduled Castes and Scheduled Tribes
b) Business communities
c) Urban middle-class families
d) Families with a single child
Answer: a) Scheduled Castes and Scheduled Tribes
Explanation: Scheduled Castes and Scheduled Tribes are among the social groups that are most vulnerable to poverty in India. These communities often face social exclusion, discrimination, and limited access to resources and opportunities.
Q15. What was the main reason for widespread poverty during British colonial rule in India?
a) Introduction of advanced technology
b) Promotion of economic growth
c) Ruination of traditional handicrafts and discouragement of industries
d) Effective implementation of land reforms
Answer: c) Ruination of traditional handicrafts and discouragement of industries
Explanation: During the British colonial rule, policies implemented by the colonial government led to the destruction of traditional handicrafts and discouraged the development of industries, contributing to widespread poverty.
Q16. What is the purpose of the Prime Minister Rozgar Yozana (PMRY)?
a) To provide housing for the urban poor
b) To promote self-employment opportunities for educated unemployed youth
c) To ensure food security for rural households
d) To provide free healthcare services in rural areas
Answer: b) To promote self-employment opportunities for educated unemployed youth
Explanation: Launched in 1993, the Prime Minister Rozgar Yozana (PMRY) aims to create self-employment opportunities for educated unemployed youth in rural areas and small towns, helping them set up small businesses and industries.
Q17. What is the key focus of the Rural Employment Generation Programme (REGP)?
a) To provide educational facilities in rural areas
b) To create self-employment opportunities in rural areas
c) To improve agricultural productivity
d) To promote rural healthcare services
Answer: b) To create self-employment opportunities in rural areas
Explanation: The Rural Employment Generation Programme (REGP), launched in 1995, focuses on creating self-employment opportunities in rural areas and small towns. It targets setting up small businesses and industries to generate employment.
Q18. Which state in India has traditionally been successful in reducing poverty through high agricultural growth rates?
a) Kerala
b) Punjab
c) Bihar
d) West Bengal
Answer: b) Punjab
Explanation: Punjab, along with Haryana, has traditionally been successful in reducing poverty through high agricultural growth rates. The Green Revolution contributed significantly to this achievement.
Q19. What does the term ‘human poverty’ encompass beyond income poverty?
a) Only the level of education
b) Only access to healthcare
c) Multiple deprivations in health, education, and living standards
d) Only the availability of job opportunities
Answer: c) Multiple deprivations in health, education, and living standards
Explanation: ‘Human poverty’ is a broader concept that extends beyond income poverty. It includes multiple deprivations that a person might face in terms of health, education, and living standards.
Q20. In the context of Indian poverty, what does ‘social exclusion’ primarily refer to?
a) Economic inequality based on income
b) Exclusion based on caste or community
c) Lack of access to technology
d) Geographic isolation from urban areas
Answer: b) Exclusion based on caste or community
Explanation: In the Indian context, ‘social exclusion’ primarily refers to the exclusion of certain groups of people (like those belonging to certain castes or communities) from equal opportunities and benefits that others enjoy.
Q21. As per the Tendulkar Methodology, what percentage of India’s population was living below the poverty line in 2004-05?
a) About 50%
b) About 45%
c) About 37%
d) About 22%
Answer: c) About 37%
Explanation: According to the Tendulkar Methodology, approximately 37% of India’s population was living below the poverty line in 2004-05. This was a decrease from earlier percentages, indicating progress in poverty reduction.
Q22. What is the main reason for the implementation of targeted anti-poverty programs in India?
a) To accelerate the country’s overall economic growth
b) To specifically assist those who might not benefit directly from economic growth
c) To increase India’s GDP
d) To promote industrialization in rural areas
Answer: b) To specifically assist those who might not benefit directly from economic growth
Explanation: Targeted anti-poverty programs in India are implemented to specifically assist those segments of the population that might not benefit directly from economic growth. These programs aim to directly address the needs of the poorest and most vulnerable groups.
Q23. Which concept in poverty analysis describes the likelihood of certain communities becoming or remaining poor in the coming years?
a) Social exclusion
b) Vulnerability
c) Economic disparity
d) Income inequality
Answer: b) Vulnerability
Explanation: In poverty analysis, ‘vulnerability’ refers to the measure of the likelihood that certain communities or individuals might become or remain poor in the coming years. It considers factors such as assets, education, health, and exposure to risks.
Q24. Which of the following is a primary feature of the Swarnajayanti Gram Swarozgar Yojana (SGSY)?
a) Providing free healthcare in rural areas
b) Organizing the poor into self-help groups
c) Focusing solely on agricultural development
d) Offering technological support to farmers
Answer: b) Organizing the poor into self-help groups
Explanation: The Swarnajayanti Gram Swarozgar Yojana (SGSY), launched in 1999, primarily focuses on organizing the poor into self-help groups. The aim is to bring the assisted poor families above the poverty line by providing them with a mix of bank credit and government subsidy.
Q25. What is the main objective of the Pradhan Mantri Gramodaya Yozana (PMGY)?
a) To provide additional central assistance for basic services in rural areas
b) To create job opportunities in urban areas
c) To promote higher education in rural areas
d) To increase agricultural exports from rural areas
Answer: a) To provide additional central assistance for basic services in rural areas
Explanation: The Pradhan Mantri Gramodaya Yozana (PMGY) was launched with the objective of providing additional central assistance to states for basic services such as primary health, primary education, rural shelter, rural drinking water, and rural electrification.
Q26. As per the 2011-12 data, what percentage of people living in India’s Scheduled Tribes are below the poverty line?
a) About 43%
b) About 22%
c) About 34%
d) About 29%
Answer: a) About 43%
Explanation: According to the 2011-12 data, approximately 43% of people living in India’s Scheduled Tribes are below the poverty line, indicating a higher prevalence of poverty among this social group compared to the national average.
Q27. What is the main cause of poverty in India during British colonial rule?
a) Industrialization
b) Agricultural reforms
c) Traditional handicrafts’ ruin and discouragement of industries
d) Rapid population growth
Answer: c) Traditional handicrafts’ ruin and discouragement of industries
Explanation: During British colonial rule in India, the policies of the colonial government led to the ruin of traditional handicrafts and discouraged the development of industries. This contributed significantly to widespread poverty in the country.
Q28. Which state in India is known for its focus on human resource development to reduce poverty?
a) Punjab
b) Kerala
c) Gujarat
d) Bihar
Answer: b) Kerala
Explanation: Kerala is known for its focus on human resource development as a strategy to reduce poverty. The state has invested significantly in education and healthcare, contributing to its success in poverty reduction.
Q29. What does the World Bank’s international poverty line of $1.90 per day primarily measure?
a) Standard of living
b) Access to education
c) Extreme economic poverty
d) Unemployment rates
Answer: c) Extreme economic poverty
Explanation: The World Bank’s international poverty line of $1.90 per day is a measure of extreme economic poverty. It defines the threshold below which individuals are considered to be living in extreme poverty.
Q30. What was the primary goal of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005?
a) To provide technological aid to farmers
b) To guarantee rural housing
c) To ensure livelihood security in rural areas through wage employment
d) To promote rural education
Answer: c) To ensure livelihood security in rural areas through wage employment
Explanation: The primary goal of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, is to ensure livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
Q31. What has been a significant factor in reducing poverty in India since the 1980s?
a) Decreased focus on agriculture
b) Increased industrialization in urban areas
c) Higher economic growth rates
d) Reduction in population growth rate
Answer: c) Higher economic growth rates
Explanation: Since the 1980s, higher economic growth rates have been a significant factor in reducing poverty in India. Economic growth has widened opportunities and provided the resources needed to invest in human development, thereby helping to reduce poverty levels.
Q32. Which program was launched in 1995 to create self-employment opportunities in rural areas and small towns?
a) Pradhan Mantri Gramodaya Yozana (PMGY)
b) Rural Employment Generation Programme (REGP)
c) Swarnajayanti Gram Swarozgar Yojana (SGSY)
d) Antyodaya Anna Yozana (AAY)
Answer: b) Rural Employment Generation Programme (REGP)
Explanation: The Rural Employment Generation Programme (REGP) was launched in 1995 with the aim of creating self-employment opportunities in rural areas and small towns. It targets setting up small businesses and industries to generate employment.
Q33. What is the primary purpose of the Antyodaya Anna Yozana (AAY)?
a) To provide financial assistance to rural entrepreneurs
b) To ensure food security for the poorest segments of society
c) To promote education in rural areas
d) To provide healthcare services in rural regions
Answer: b) To ensure food security for the poorest segments of society
Explanation: The Antyodaya Anna Yozana (AAY) is aimed at ensuring food security for the poorest segments of society by providing them access to food at highly subsidized rates. It is a significant step towards addressing hunger and malnutrition among the most vulnerable.
Q34. What challenge does high population growth pose in the context of poverty?
a) It decreases the availability of natural resources
b) It increases the demand for industrial goods
c) It dilutes the effects of economic growth on poverty reduction
d) It leads to an oversupply in the labor market
Answer: c) It dilutes the effects of economic growth on poverty reduction
Explanation: High population growth can dilute the effects of economic growth on poverty reduction. More people may lead to a lower growth rate of per capita income, making it more challenging to reduce poverty effectively.
Q35. Which aspect of poverty is highlighted by the concept of ‘social exclusion’?
a) Lack of financial resources
b) Inability to access public services
c) Exclusion from societal participation and benefits
d) Geographic isolation from urban areas
Answer: c) Exclusion from societal participation and benefits
Explanation: Social exclusion in the context of poverty highlights the aspect where individuals or groups are excluded from participating in societal activities and from accessing benefits and opportunities that others enjoy, leading to further impoverishment.
Q36. What does the ‘vulnerability’ concept in poverty analysis focus on?
a) The fluctuation in global economic conditions
b) The risk of communities becoming or remaining poor
c) The stability of a country’s political environment
d) The impact of natural disasters on economies
Answer: b) The risk of communities becoming or remaining poor
Explanation: The concept of ‘vulnerability’ in poverty analysis focuses on the risk and probability of certain communities or individuals becoming or remaining poor in the future. It takes into account factors like economic stability, employment opportunities, and exposure to risks.
Q37. Which state in India has made significant strides in poverty reduction through land reform measures?
a) Gujarat
b) West Bengal
c) Maharashtra
d) Tamil Nadu
Answer: b) West Bengal
Explanation: West Bengal has made significant strides in poverty reduction through effective land reform measures. These reforms have redistributed land to the landless, improving their economic conditions and reducing poverty.
Q38. As of 2011-12, what was the poverty ratio in urban areas of India?
a) About 14%
b) About 26%
c) About 22%
d) About 34%
Answer: a) About 14%
Explanation: As of 2011-12, the poverty ratio in urban areas of India was about 14%. This indicates a lower prevalence of poverty in urban areas compared to rural areas.
Q39. What is the primary strategy behind targeted anti-poverty programs?
a) To promote large-scale industrialization
b) To specifically assist segments of the population less likely to benefit from economic growth
c) To increase exports from rural areas
d) To focus solely on technological development
Answer: b) To specifically assist segments of the population less likely to benefit from economic growth
Explanation: Targeted anti-poverty programs are designed to specifically assist segments of the population that are less likely to benefit directly from overall economic growth. These programs aim to address the needs of the poorest and most vulnerable groups.
Q40. What trend is evident in global poverty as of 2015, according to the World Bank?
a) An increase in extreme economic poverty
b) A substantial reduction in extreme economic poverty
c) No significant change in poverty levels
d) A shift of poverty from urban to rural areas
Answer: b) A substantial reduction in extreme economic poverty
Explanation: According to the World Bank, as of 2015, there has been a substantial reduction in extreme economic poverty globally. The proportion of people living on less than $1.90 per day has fallen significantly, reflecting progress in poverty reduction efforts worldwide.