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Which phase of India's poverty alleviation strategy focused on creating more wealth and enabling the poor to benefit from economic growth?
  • a)
    The first phase.
  • b)
    The second phase.
  • c)
    The third phase.
  • d)
    The text does not provide information on the phases.
Correct answer is option 'C'. Can you explain this answer?

Valor Academy answered
As per the information in the text, the third phase of India's poverty alleviation strategy, starting from the 1990s, focused on creating more wealth and enabling the poor to benefit from the secondary effects of economic growth.

Which type of unemployment is characterized by a scarcity of land, capital, or skill in the economy, causing a structural disequilibrium in the labor sector?
  • a)
    Open unemployment.
  • b)
    Seasonal unemployment.
  • c)
    Disguised unemployment.
  • d)
    Structural unemployment.
Correct answer is option 'D'. Can you explain this answer?

Structural unemployment is characterized by a scarcity of essential resources like land, capital, or skills in the economy, leading to a structural imbalance in the labor market. It often requires significant structural changes to address this type of unemployment.

What is the primary difference between open unemployment and disguised unemployment?
  • a)
    Open unemployment is more common in rural areas, while disguised unemployment is more common in urban areas.
  • b)
    Open unemployment involves individuals who are completely jobless, while disguised unemployment involves individuals who are employed but not fully utilized.
  • c)
    Open unemployment occurs during economic recessions, while disguised unemployment occurs during economic booms.
  • d)
    There is no significant difference between open unemployment and disguised unemployment.
Correct answer is option 'B'. Can you explain this answer?

Debanshi Desai answered
Primary Difference Between Open Unemployment and Disguised Unemployment:
Open Unemployment:
- Open unemployment refers to individuals who are completely jobless and actively seeking employment.
- These individuals are not engaged in any productive work and are visibly unemployed.
- It is more common in urban areas where job opportunities may be limited, leading to a higher rate of open unemployment.
Disguised Unemployment:
- Disguised unemployment, on the other hand, involves individuals who are employed but not fully utilized in their current roles.
- These individuals may be working in jobs that do not require their full capacity or skills, leading to underemployment.
- Disguised unemployment is often seen in sectors like agriculture, where too many people are engaged in a task that could be done by fewer workers.

Key Difference:
- The primary difference between open unemployment and disguised unemployment is that open unemployment involves individuals who are completely jobless, while disguised unemployment involves individuals who are employed but not fully utilized.
In conclusion, while open unemployment and disguised unemployment both represent forms of underutilization of human resources, the key distinction lies in the fact that open unemployment involves visible joblessness, whereas disguised unemployment involves individuals who are employed but not optimally utilized in their current positions.

What is the significance of the poverty line in the context of poverty measurement in India?
  • a)
    The poverty line is used to define the minimum wage for workers.
  • b)
    The poverty line determines who is eligible for government welfare programs.
  • c)
    The poverty line is a measure of income inequality.
  • d)
    The poverty line is only applicable in rural areas.
Correct answer is option 'B'. Can you explain this answer?

Abhiram Menon answered
The significance of the poverty line in the context of poverty measurement in India is as follows:
- Determining eligibility for government welfare programs: The poverty line in India is used to determine who is eligible for various government welfare programs and benefits. Individuals or families whose income falls below the poverty line are considered to be living in poverty and are thus eligible for assistance from the government in the form of subsidies, food grains, healthcare, education, and other essential services.
- Identifying the extent of poverty: The poverty line helps in identifying the extent of poverty in the country by providing a benchmark against which poverty levels can be measured. By comparing the income of individuals or households to the poverty line, policymakers and researchers can assess the prevalence of poverty and develop targeted interventions to alleviate poverty.
- Setting poverty reduction targets: The poverty line also plays a crucial role in setting poverty reduction targets and monitoring progress towards achieving these targets. By establishing a clear threshold below which individuals are considered to be living in poverty, policymakers can track changes in poverty rates over time and evaluate the effectiveness of poverty reduction strategies.
- Allocating resources: The poverty line helps in the allocation of resources by guiding policymakers in identifying areas and populations that are most in need of assistance. By targeting resources towards individuals or communities living below the poverty line, governments can ensure that limited resources are effectively utilized to alleviate poverty and improve the well-being of the most vulnerable sections of society.
In conclusion, the poverty line is a crucial tool in poverty measurement in India as it helps in determining eligibility for government welfare programs, identifying the extent of poverty, setting poverty reduction targets, and allocating resources to address poverty effectively.

What type of unemployment is characteristic of rural areas in India according to the provided text?
  • a)
    Open unemployment.
  • b)
    Structural unemployment.
  • c)
    Cyclical unemployment.
  • d)
    Disguised unemployment.
Correct answer is option 'D'. Can you explain this answer?

The text mentions that rural unemployment in India is largely characterized by the existence of disguised unemployment. Disguised unemployment often occurs in agricultural settings and involves individuals who are employed but could be removed without affecting overall productivity.

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