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IAS Exam: Prelims Economy NCERT Questions: Poverty Set I

Jan 22, 2016 17:04 IST

    NCERT Books are dispensable for the IAS Preparation. IAS Exam requires the good understanding of the NCERT Books. Economy is one of the most asked subjects on the IAS Prelims Exam. Here we present NCERT Based Questions for the IAS Prelims Exam.

    Q1. The pattern of development that the successive five year plans envisaged:
    1. Integrating the poor into the mainstream and achieving a minimum standard of living for all.
    2. It ignored the upliftment of the poorest of the poor (Antyodaya).

    Which of the above statements is/are correct?
    a) 1 only
    b) 2 only
    c) Both 1 and 2
    d) Neither 1 nor 2

    Answer. b)

    Explanation:
    The pattern of development that the successive five year plans laid emphasis on the upliftment of the poorest of the poor (Antyodaya).

    Q2. Poverty is not a challenge for Indiaonly. Consider the below statements in this regard:
    1. More than one-fifth of the world’s poor live in India alone.
    2. Across the world, about 300 million people are not able to meet their basic needs.
    Which of the above statements is/are correct?
    a) 1 only
    b) 2 only
    c) Both 1 and 2
    d) Neither 1 nor 2

    Answer. c)

    Explanation:
    World Bank forecasts that 702.1 million people were living in extreme poverty in 2015, down from 1.75 billion in 1990. Of these, about 347.1 million people lived in Sub-Saharan Africa (35.2% of the population) and 231.3 million lived in South Asia (13.5% of the population).

    Q3. Evaluate the below statements with regard to urban poor:  
    1. The urban poor are largely those who could not compete with fast urban growth and did not have supportive health.
    2. The rural poor who had migrated to urban areas in search of alternative employment and livelihood have largely been absorbed by industrialization.

    Which of the above statements is/are correct?
    a) 1 only
    b) 2 only
    c) Both 1 and 2
    d) Neither 1 nor 2

    Answer. d)

    Explanation: The urban poor are largely the overflow of the rural poor who had migrated to urban areas in search of alternative employment and livelihood. Industrialisation has not been able to absorb all these people.


    Q4. Consider the below statements regarding casual labours:
    1. The urban poor are either unemployed or intermittently employed as casual labourers.
    2. Casual labourers are among the most vulnerable in society as they have no job security, no assets, limited skills, sparse opportunities and no surplus to sustain them.

    Which of the above statements is/are correct?
    a) 1 only
    b) 2 only
    c) Both 1 and 2
    d) Neither 1 nor 2

    Answer. c)

    Explanation:
    Casual employment can be defined as where an employee is employed when and if needed, and where there is no particular expectation of continuing employment. Whether an employee is employed on a casual basis is a regularly contested matter.


    Q5. Which of the following are correct?
    1. In pre-independent India, DadabhaiNaoroji was the first to discuss the concept of a Poverty Line.
    2. He used the menu for a prisoner and used appropriate prevailing prices to arrive at what may be called ‘jail cost of living’.
    3. His estimation was not very accurate as he ignored the fact that there are only adults in jail and not children.

    Select the correct statements using the codes given below:
    a) 1 and 2 only
    b) 2 and 3 only
    c) 1 and 3 only
    d) None of the above

    Answer. a)
    Explanation:
    Only adults stay in jail whereas, in an actual society, there are children too. He, therefore, appropriately adjusted this cost of living to arrive at the poverty line.

    Q6. Evaluate the below statements.
    1. In post-independent India, there has hardly been any attempt to work out a mechanism to identify the number of poor in the country, up to 1990.
    2. Besides Planning Commission, no individual efforts have been attempted to develop such a mechanism.

    Which of the above statements is/are correct?
    a) 1 only
    b) 2 only
    c) Both 1 and 2
    d) Neither 1 nor 2

    Answer. d)

    Explanation:
    In post-independent India, there have been several attempts.
    For instance, in 1962, the Planning Commission formed a Study Group. In 1979, another body called the ‘Task Force on Projections of Minimum Needs and Effective Consumption Demand’ was formed. In 1989 and 2005, ‘Expert Groups’ were constituted for the same purpose.
    Besides Planning Commission, many individual economists have also attempted to develop such a mechanism.

    Q7. There are many ways of measuring poverty. One way is to determine it by the monetary value (per capita expenditure) of the minimum calorie intake.
    1. It was estimated at 2,400 calories for a rural person and 2,100 calories for a person in the urban area.
    2. Based on this, in 2009-10, the poverty line was defined for rural areas as consumption was lower (worth Rs.673) per person a month and for urban areas it was higher (Rs.860). [Ignore the correctness of amounts. They are correct.]
    3. The government uses Monthly Per Capita Expenditure (MPCE) as proxy for income of households to identify the poor.

    Select the correct statements using the codes given below:
    a) 1 and 2 only
    b) 2 and 3 only
    c) 1 and 3 only
    d) 1, 2 and 3

    Answer. d)

    Explanation:
    In India, we have a long history of studies on the measurement of poverty. The methodology for the estimation of poverty used by the erstwhile Planning Commission was based on recommendations made by various expert groups. In June 2012, the government of India appointed an expert group (with C. Rangarajan as chairman) to take a fresh look at the methodology for the measurement of poverty.
    The Rangarajan expert group has gone back to the idea of separate poverty line baskets for rural and urban areas, unlike the Tendulkar Committee, which took urban poverty as a given and used it as the ‘common basket’ for rural and urban households.

    Q8. Which of the below statements is/are not correct?
    1. There are many factors, other than income and assets, which are associated with poverty; for instance, the accessibility to basic education, health care, drinking water and sanitation. They need to be considered to develop Poverty Line.
    2. The existing mechanism for determining the Poverty Line does take into consideration social factors that trigger and perpetuate poverty.

    a) 1 only
    b) 2 only
    c) Both 1 and 2
    d) Neither 1 nor 2

    Answer. b)

    Explanation: The existing mechanism for determining the Poverty Line also does not take into consideration social factors that trigger and perpetuate poverty such as illiteracy, ill health, lack of access to resources, discrimination or lack of civil and political freedoms.


    Q9. Due to various limitations in the official estimation of poverty, scholars have attempted to find alternative methods. Which of the following are among such methods?
    a) Sen Index
    b) Poverty Gap Index
    c) Squared Poverty Gap
    d) All of the above
    Answer. d)

    Explanation: AmartyaSen, noted Nobel Laureate, has developed an index known as Sen Index.

    Q10. What is ‘Head Count Ratio’ related to?
    a) Population
    b) Poverty line
    c) Employment
    d) None of the above

    Answer. b)

    Explanation: When the number of poor is estimated as the proportion of people below the poverty line, it is known as ‘Head Count Ratio’.

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