Notes on Poverty as a Challenge | MCQs & Q&A

Multiple Choice Questions of Poverty as a Challenge

CLASS IX | ECONOMICS | NCERT | CHAPTER 03

1. The country which has the largest single concentration of the poor people in the world is
a) China
b) Pakistan
c) India
d) Nepal

NOTES ON POVERTY AS A CHALLENGE

2. Poverty as defined by World Bank implies living below
a) $1 per day
b) $100 per month
c) $10 per day
d) $100 per day

3. For the year 2000, the poverty line for a person in urban areas in India was fixed at
a) Rs. 454 per month
b) Rs. 500 per month
c) Rs. 328 per month
d) Rs. 1640 per month

4. Define the statement which suggests that calories requirements in rural areas are considered to be higher than urban areas.
a) Because people in rural areas are poor.
b) Because people in rural areas are adversely affected by natural calamities.
c) Because people living in rural areas engage themselves in more physical work.
d) Because people living in rural areas arc engaged in agriculture.

5. The accepted average calorie requirement per person in urban areas in India is
a) 2200 calories
b) 2000 calories
c) 2300 calories
d) 2100 calories

6. The calorie requirement is higher in rural areas because
a) they do not enjoy as much as people in urban areas
b) food items are expensive
c) they are unemployed
d) people are engaged in more physical labour Important Questions

7. The poorest states in India are:
i) Orissa
ii) Bihar
iii)Punjab
iv) Haryana
a) (i) and (ii)
b) (iii) and (iv)
c) (ii) and (,iii)
d) All (i), (ii), (iii) and (iv)

8. There is inequality of income within a family. Persons who are poorest of the poor in the family are ____________ .
(i) Women
(ii) Girl
(iii) Children
(iv) Old people
a) (i)and(ii)
b) (i)and(iii)
c) All (i),(ii)and(iv)
d) All are irrelevant.



9. Antyodaya Anna Yojana was launched in
a) 2003
b) 1999
c) 2000
d) 2005

10. For making comparisons between developing countries, which uniform standard (per person per day) for the poverty line is used in terms of minimum availability?
a) $1
b) $2
c) $3
d) $5

11. Every____ person in India is poor.
a) Third
b) Fourth
c) Fifth
d) Tenth

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

13. Which of the following is a social indicator of poverty laid by social scientists?
a) Increase in population
b) Illiteracy level
c) Caste
d) Health club membership

14. Which one of the social groups is vulnerable to poverty?
a) Scheduled caste
b) Urban casual labour
c) Rural agricultural households
d) All of these

15. Which state has the largest percentage of poor in India?
a) Bihar
b) Orissa
c) Kerala
d) Punjab

16. What is accepted average calories required in India in urban areas?
a) 2100
b) 2400
c) 2800
d) 2500

17. Which one is a social group from amongst the following groups vulnerable to poverty?
a) Rural agricultural labour households
b) Urban casual labour households
c) Scheduled caste and scheduled tribe households
d) The female daily wagers

18. There has been a significant decline in poverty in the state of
a) Assam
b) Bihar
c) Jammu & Kashmir
d) Uttar Pradesh

19. Which among the following is the method to estimate the poverty?
a) Investment Method
b) Income Method
c) Capital Method
d) Human Method

20. 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 Yojna
b) National Rural Employment Guaranty Act
c) Rural Employment Generation Programme
d) Swarnajayanti Gram Swarojgar Yojna

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

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

ANSWERS of MCQs of Poverty as a Challenge

1. c) India
2. a) $1 per day
3. a) Rs. 454 per month
4. c) Because people living in rural areas engage themselves in more physical work.
5. d) 2100 calories
6. d) people are engaged in more physical labour Important Questions
7. a) (i) and (ii)
8. c) All (i),(ii)and(iv)
9. b) 1999
10. a) $1
11. b) fourth
12. a) Sub-Saharan Africa
13. b) Illiteracy level
14. d) All of these
15. b) Orissa
16. b) 2400
17. c) Scheduled caste and scheduled tribe households
18. c) Jammu & Kashmir
19. b) Income Method
20. a) Prime Minister Rojgar Yojna
21. b) Lack of fertile land
22. a) Jute

Question-Answers of Poverty as a Challenge (Q&A of Poverty as a Challenge)

Q.1: Describe how the poverty line is estimated in India.
Ans: In India poverty line is measured or calculated considering the following factors required for subsistence:
1. Minimum level of food requirement,
2. Clothing
3. Footwear
4. Fuel and Light
5. Education and
6. Medical requirement etc.
These physical quantities are multiplied by their prices. The present formula for food requirement is based on the desired calorie requirement. On the basis of these calculations in 1999 - 2000, the poverty line in the rural areas was fixed Rs.328 per capita per month and in urban areas, it was Rs.454. People earning more than this amount were considered above the poverty line and earning less than this amount were considered as living below the poverty line.

Q.2: Do you think that present methodology of poverty estimation is appropriate?
Ans: The present methodology of poverty estimation does not look appropriate. It only takes one factor in view and that is the economic factor. Moreover it considers about a “minimum” subsistence level of living rather than a “reasonable” level of living.
Poverty has many dimensions. It is no longer confined to economic factors alone. With development, the definitions of what constitutes poverty also changes. Its concept has broadened to human poverty. A few persons may have been able to feed themselves but if they are without education, without shelter, without health-care, without job security, without self-confidence, without social equality, they are considered poor. If poverty is to be removed in real sense and the people are to be brought above the poverty line, not only that we need to increase their income but also, we have to provide the people with education, shelter, health-care, job-security, respect, dignity all.
Therefore, the present methodology of poverty estimation needs to be modified and broadened in order to make it an appropriate method.

Q.3: Describe poverty trends in India since 1973.
Ans: As per the data given in the book there is a substantial decline in poverty ratio in India from 55 percent in 1973 to 36 percent in 1993. There was further decline from 36 percent in 1993 to 26 percent in 2000. Although the number of poor people remained stable (about 320 million) in the earlier two decades (1973 to 1993), there was significant reduction in the number of the poor to about 260 million till 2000. If the present trend continues, the people below poverty line may come down to less than 20 percent in the next few years.

Q.4: Discuss the major reasons for poverty in India.
Ans: There are various reasons for poverty in India which are outlined below -
(1) Prolonged Colonial Administration
The policies of British Colonial government shattered the Indian economy so much that it could not be revived until the 1980s.
(2) Unabated Population Growth
The failures to promote both the required economic growth and population control have been the main cause of poverty today.
(3) Illiteracy
Illiteracy is also an important cause of poverty in our country.
(4) Disparity in the Ownership of Land-holdings
The unequal distribution of land, lack of land resources and failure in the proper implementation of land reform policies have been the major causes of poverty in rural areas.
(5) Unemployment
Lack of job security and unemployment are other causes.
(6) Widening Inequalities of Income
This is a feature of high poverty. Money has been concentrating in fewer hands, thus rendering a majority of people poor.
(7) Slow Growth of Employment Opportunities
Despite the implementation of various employment generating programmes our government has failed to provide the necessary employment opportunities.
(8) Socio-cultural Factors
In order to fulfill social obligations such as marriage etc. and religious ceremonies people in India including the poor spend a lot of money which makes some people even poorer.

Q.5: Identify the social and economic groups which are most vulnerable to poverty in India.
Ans: Social Groups vulnerable to Poverty in India
(1) Scheduled Castes households.
(2) Scheduled Tribes households.
Economic Groups vulnerable to Poverty
(1) Rural Agricultural labour households.
(2) Urban Casual labour households.

Q.6: Give an account of interstate disparities of poverty in India.
Ans: Poverty in India is not the same in every state. The success rate of reducing poverty varies from state to state causing inter-state disparities in poverty level. Orissa, Bihar and Madhya Pradesh are the three poorest states in India with their people living below poverty line being 47, 42 and 37 percent respectively. Jammu and Kashmir, Punjab and Himachal Pradesh are the three better-off states in India as far as the poverty is concerned.

Q.7: Describe global poverty trends.
Ans: There have been substantial reduction in global poverty, but there are regional disparities described below -
(1) Poverty declined in China and South-East Asian countries as a result of rapid economic growth and huge investments in the development of human resources.
(2) In Latin America, the ratio of poverty remained almost the same.
(3) In sub-Saharan Africa, poverty saw an upward trend rather than a downward trend. It rose from 41% in 1981 to 46% in 2001.
(4) Poverty ha surfaced itself in some of the former socialist countries like Russia, where formerly it was non-existent.

Q.8: Describe current government strategy of poverty alleviation.
Ans: Removal of poverty has one of the major objectives of Indian developmental strategy. The current government strategy of poverty alleviation is based on two planks:
(1) Promotion of Economic Growth
(2) Targeted Anti-poverty Programmes
Some of the anti-poverty programmes undertaken by government at present are discussed below:
Prime Minister’s Rozgar Yojana (PMRY)
Started in 1993, this programme aims to create self-employment opportunities for educated unemployed youth in rural areas and small towns.
Pradhan Mantri Gramodaya Yojana (PMGY)
Launched in 2000, this aims to create and improve basic services like primary health, primary education, rural shelter, rural drinking water and rural electrification.
National Food for Work programme (NFWP)
Launched in 2004 in 150 most backward districts of the country, this programme is open to all rural poor who are in need of wage employment and desired to do manual unskilled work.
National Rural Employment Guarantee Act (NREGA)
This act was passed in September 2005. The act provides 100 days assured employment every year to every rural household in 200 districts. Later, the scheme will be extended to 600 districts and also one third to the proposed jobs would be reserved for women.

Q.9: Answer the following questions briefly -
(i) What do you understand by human poverty?
(ii) Who are the poorest of the poor?
(iii) What are the main features of the National Rural Employment Guarantee Act 2005?
Ans:
(i) Poverty is multidimensional problem. As per the official concept of poverty, a person is considered poor if his or her income falls below a given ‘minimum level’. But human poverty is not confined to economic factors alone. With development, the definitions of what constitutes poverty also changes. The official definition of poverty considers only a ‘minimum’ subsistence level of living rather than a ‘reasonable’ level of living. Many scholars advocate that the concept of human poverty must be broadened and should be looked through other social indicators like - illiteracy level, lack of general resistance due to mal-nutrition, lack of access to resources like health-care, safe drinking water, job opportunities, sanitation, lack of self-confidence without social equality etc.

(ii) Women, children (especially the girl child) and elder people in a poor family are regarded as the poorest of the poor because they are systematically denied equal access to resources available to the family.

(iii) Main Features of National Rural Employment Guarantee Act, 2005
(a) NREGA provides 100 days assured employment every year to every rural household in 200 districts. Later, the scheme will be extended to 600 districts. One-third of the proposed jobs would be reserved for women.
(b) The central government will establish a National Employment Guarantee Fund. Similarly, state governments will establish State Employment Guarantee Funds for the implementation of the scheme.

Q.10: Explain four important anti-poverty measures 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.