15 Questions MCQ Test Indian Economy for UPSC CSE - Test: Poverty as a Challenge- 2
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Which organisation carries out a survey for determining the poverty line?
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 1
Organisation Carrying out Survey for Determining the Poverty Line The organisation responsible for carrying out a survey to determine the poverty line is the National Sample Survey Office (NSSO). Explanation: The NSSO is a government agency in India that conducts various surveys to collect data on different aspects of the Indian economy and society. One of the surveys conducted by the NSSO is the Consumer Expenditure Survey (CES), which collects data on household consumption patterns, income distribution, and poverty levels. To determine the poverty line, the NSSO uses the data collected from the CES survey and applies a methodology based on the consumption expenditure of households. The poverty line is set based on the minimum level of consumption required to meet the basic needs of a household. The NSSO periodically conducts the CES survey and updates the poverty line based on the changing economic conditions and consumption patterns. This helps in monitoring and evaluating the poverty alleviation programs and policies implemented by the government. Key Points: - The National Sample Survey Office (NSSO) carries out the survey to determine the poverty line. - The NSSO conducts the Consumer Expenditure Survey (CES) to collect data on household consumption patterns, income distribution, and poverty levels. - The poverty line is determined based on the minimum level of consumption required to meet the basic needs of a household. - The NSSO periodically updates the poverty line based on changing economic conditions and consumption patterns.
For the year 2011-12, the poverty line for a person in rural areas in India was fixed at:
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 2
To determine the poverty line for a person in rural areas in India for the year 2011-12, we need to consider the official poverty line set by the government during that period. The correct answer is B: Rs. 816 per month. Explanation: Here are the details regarding the poverty line for a person in rural areas in India for the year 2011-12: - The poverty line is the minimum income level required to meet basic needs such as food, clothing, and shelter. - The poverty line is determined based on the consumption expenditure of households in India. - The poverty line is revised periodically to account for inflation and changes in the cost of living. - For the year 2011-12, the poverty line for a person in rural areas in India was fixed at Rs. 816 per month. - This means that a person earning less than Rs. 816 per month in rural areas would be considered below the poverty line. - The poverty line varies for different regions and urban areas in India. Summary: The poverty line for a person in rural areas in India for the year 2011-12 was Rs. 816 per month. This means that individuals earning less than Rs. 816 per month in rural areas would be considered below the poverty line.
Under which of the following schemes 100 days of wage employment is given to every household to ensure livelihood security in rural areas?
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 3
Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MNREGA) Under the Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MNREGA), 100 days of wage employment is given to every household to ensure livelihood security in rural areas. This act was introduced by the Government of India with the aim of enhancing the livelihood security of people in rural areas by guaranteeing them employment opportunities. Here are the key points about MNREGA: 1. Objective: MNREGA aims to provide a safety net for rural households by guaranteeing them 100 days of wage employment in a financial year. 2. Eligibility: Every rural household whose adult members are willing to do unskilled manual work can apply for employment under MNREGA. Priority is given to households living below the poverty line. 3. Employment Generation: MNREGA provides employment opportunities through various rural works like water conservation, irrigation projects, rural connectivity, flood control, etc. These works are identified and prioritized by the Gram Panchayats. 4. Wage Rates: The wages provided under MNREGA are determined by the central government and vary from state to state. The wages should not be less than the minimum wage fixed by the state government. 5. Payment of Wages: The wages are directly credited to the bank or post office accounts of the workers. This ensures transparency and prevents corruption. 6. Social Audit: MNREGA mandates the conduct of social audits to ensure transparency and accountability in the implementation of the program. The social audits involve the participation of local communities in monitoring and evaluating the works done under MNREGA. 7. Grievance Redressal: MNREGA has a grievance redressal mechanism in place to address complaints and grievances related to the implementation of the program. Grievances can be registered at the local Gram Panchayat or through the toll-free helpline number. Overall, MNREGA plays a crucial role in providing livelihood security to rural households by guaranteeing them 100 days of wage employment. It not only helps in poverty alleviation but also contributes to rural development through the creation of productive assets and infrastructure in rural areas.
Which social group is most vulnerable to poverty in India?
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 4
The social groups most vulnerable to poverty have been identified to be the scheduled caste households and the scheduled tribe households with both these groups having above average levels of poverty indicators in the rural and the urban population.
Among the economic groups, the most vulnerable groups are the agricultural labour households (rural) and the casual labour households (urban) each having the highest levels.
Which of the following is not an anti-poverty programme?
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 5
Explanation: The correct answer is C: NSSO. This is not an anti-poverty program. Here is a detailed explanation of each option: A: NREGA (National Rural Employment Guarantee Act): - This is an anti-poverty program in India that guarantees employment to rural households. - It aims to provide livelihood security 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. - Through this program, individuals can earn wages and improve their economic conditions. B: AAY (Antyodaya Anna Yojana): - This is an Indian government program that aims to provide highly subsidized food grains to the poorest of the poor. - It targets the poorest families identified under the Below Poverty Line (BPL) category. - Under AAY, eligible households are provided with a specified quantity of food grains at a highly subsidized rate. C: NSSO (National Sample Survey Office): - NSSO is not an anti-poverty program. It is a government organization responsible for conducting surveys on various socio-economic aspects of the country. - It collects data on consumption, employment, health, education, etc., which helps in policy-making and planning. - Although NSSO's data and reports may inform anti-poverty programs, it is not a program itself. D: PMGY (Pradhan Mantri Gramin Yojana): - This is an anti-poverty program launched by the Indian government to provide basic amenities and infrastructure in rural areas. - It aims to improve the quality of life in rural areas by focusing on areas like housing, sanitation, roads, electricity, etc. - PMGY aims to reduce poverty and improve the standard of living in rural communities. Therefore, option C (NSSO) is not an anti-poverty program, while options A (NREGA), B (AAY), and D (PMGY) are all anti-poverty programs in India.
Which of the following social radiators is not looked at by social scientists for poverty?
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 6
To identify the social radiator that is not looked at by social scientists for poverty, we need to analyze each option and determine its relevance to poverty. A: Literacy level - Literacy level is often considered by social scientists when studying poverty. - It plays a significant role in determining an individual's access to education, employment opportunities, and overall socio-economic status. B: Lack of access to health care - Lack of access to health care is a crucial factor examined by social scientists in relation to poverty. - It highlights the disparities in healthcare services and their impact on the well-being and economic stability of individuals living in poverty. C: Lack of access to see movies and to go to restaurants - This option focuses on recreational activities and entertainment, which are not typically considered by social scientists as direct indicators of poverty. - While the lack of access to such activities can be associated with lower income levels, it is not a primary focus in poverty research. D: Lack of access to safe drinking water - Lack of access to safe drinking water is an important social radiator studied by social scientists when examining poverty. - It reflects the inadequate infrastructure and limited resources available to individuals living in poverty. Conclusion: Based on the analysis, the social radiator that is not typically looked at by social scientists for poverty is C: Lack of access to see movies and to go to restaurants. While it may indirectly relate to income levels, it is not a primary determinant of poverty and is not extensively studied in poverty research.
Which two states of India continue to be the poorest states?
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 7
The two poorest states in India are Orissa and Bihar. Reasons for Orissa being one of the poorest states: - High poverty rate: Orissa has one of the highest poverty rates in India, with a large percentage of the population living below the poverty line. - Limited industrial development: The state lacks significant industrial development, leading to limited job opportunities and low income levels. - Agricultural challenges: Orissa faces challenges in the agricultural sector, including low productivity, lack of irrigation facilities, and vulnerability to natural disasters such as droughts and floods. - Poor infrastructure: The state has inadequate infrastructure, including roads, electricity, and healthcare facilities, which hinders economic growth and development. Reasons for Bihar being one of the poorest states: - High population density: Bihar has one of the highest population densities in India, leading to increased pressure on resources and limited access to essential services. - Low literacy rate: The state has a low literacy rate, which hampers human capital development and economic progress. - Limited industrialization: Bihar has a limited industrial base, resulting in a lack of job opportunities and low income levels. - Agricultural challenges: The state faces various agricultural challenges, including low productivity, fragmented land holdings, and inadequate irrigation facilities. - Poor infrastructure: Bihar has inadequate infrastructure, including roads, electricity, and healthcare facilities, which hinders overall development. Overall, both Orissa and Bihar face significant challenges related to poverty, limited economic opportunities, and inadequate infrastructure, contributing to their status as the poorest states in India.
Social exclusion is a common indicator of poverty.
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 8
Social exclusion as an indicator of poverty Introduction: Social exclusion refers to the process in which individuals or groups are marginalized or excluded from participation in social, economic, and political activities. Poverty, on the other hand, is a condition where individuals lack the resources and capabilities to meet their basic needs and participate fully in society. In this context, the statement claims that social exclusion is a common indicator of poverty. Let's analyze whether this statement is true or false. Understanding social exclusion and poverty: - Social exclusion: It involves the denial of access to opportunities and resources, such as education, healthcare, employment, and social networks, which are essential for full participation in society. - Poverty: It is characterized by the absence or inadequacy of basic needs, such as food, shelter, clothing, and income, which hinders individuals from leading a decent life. Link between social exclusion and poverty: - Limited resources: Poverty often leads to limited access to resources, which in turn results in social exclusion. For example, individuals in poverty may lack education or job opportunities, making it difficult for them to participate fully in society. - Stigmatization: Poverty can lead to social stigma and discrimination, further isolating individuals from social networks and opportunities. This social exclusion can exacerbate poverty by limiting access to support systems. - Lack of social capital: Poverty can hinder social connections and networks, making it challenging for individuals to access opportunities and resources. This exclusion from social networks can perpetuate poverty. Conclusion: Based on the above analysis, it can be concluded that the statement is True. Social exclusion is indeed a common indicator of poverty, as poverty often leads to limited resources, stigmatization, and a lack of social capital, all of which contribute to social exclusion.
Among the economic groups, which of the following groups are the most vulnerable groups in India?
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 9
The Most Vulnerable Economic Groups in India: There are several economic groups in India that are considered vulnerable due to their precarious economic conditions. Among these groups, the most vulnerable ones are: Rural Agricultural Labour Households: - These households rely on agricultural labor as their primary source of income. - They often face seasonal employment and low wages, making them vulnerable to poverty and economic instability. - Lack of access to formal credit and social protection exacerbates their vulnerability. Urban Casual Labour Households: - These households depend on casual labor in urban areas, such as construction work or daily wage labor. - They face irregular employment and low wages, leading to income volatility and financial insecurity. - Limited access to social security benefits and skill development further compounds their vulnerability. Farmers with 1-Hectare Land: - Small-scale farmers with limited land holdings are vulnerable due to various factors. - They often struggle with low productivity, lack of access to modern technology, and market uncertainties. - High input costs, fluctuations in crop prices, and climate change risks further contribute to their vulnerability. Urban Small Shopkeepers: - Small shopkeepers in urban areas face challenges such as competition from larger retailers and e-commerce platforms. - They often operate on thin profit margins and struggle to sustain their businesses. - Lack of access to credit, rising rentals, and changing consumer preferences make them vulnerable to economic shocks. Urban Daily Wages: - Daily wage workers in urban areas, such as construction laborers and domestic workers, face constant income uncertainty. - They often lack job security, receive low wages, and have limited access to social protection. - Absence of formal employment contracts and inadequate social security coverage make them highly vulnerable. Overall, these vulnerable economic groups in India face various challenges, including low income, limited access to credit and social protection, and lack of job security. Addressing their needs and improving their economic conditions should be a priority for policymakers to reduce poverty and promote inclusive growth.
The poverty line in rural areas is (for the year-2000):
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 10
Answer: The poverty line in rural areas for the year 2000 is Rs. 328. Explanation: To determine the poverty line in rural areas for the year 2000, we need to consider the available data and statistics. Given that the poverty line is a measure of the minimum income required to meet basic needs, it is crucial to determine the accurate value. Here are the steps to calculate the poverty line in rural areas for the year 2000: 1. Gather data: Collect relevant data on the cost of basic necessities such as food, shelter, healthcare, and education in rural areas for the year 2000. 2. Calculate the cost of basic necessities: Determine the average cost of food, shelter, healthcare, and education for a household in rural areas. 3. Determine the poverty threshold: The poverty threshold represents the minimum income required to meet the cost of basic necessities. It is calculated by multiplying the cost of basic necessities by a factor that represents the minimum acceptable standard of living. 4. Consider inflation: Adjust the poverty threshold for inflation to account for changes in the cost of living from the reference year to the year 2000. 5. Analyze the data: Compare the poverty threshold with the income distribution data to identify the income level below which individuals or households are considered to be living in poverty. Based on the available data and calculations, the poverty line in rural areas for the year 2000 is determined to be Rs. 328.
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 11
Explanation: The statement is False. Here's why: 1. The statement mentions that the urban poor has an income of Rs. 2,000 per month. 2. However, the term "urban poor" is a general category that includes people with varying income levels. It is not accurate to assume that all urban poor individuals have an income of Rs. 2,000 per month. 3. The income of urban poor individuals can vary significantly depending on factors such as location, occupation, education, and family size. 4. In reality, the income of urban poor individuals can be below Rs. 2,000 per month, but it can also be higher or lower depending on individual circumstances. 5. It is important to note that poverty is a complex issue, and income alone does not capture the full extent of an individual or household's financial situation. Other factors such as access to basic amenities, quality of housing, and healthcare also play a significant role in determining the overall well-being of the urban poor. Therefore, the statement that the urban poor has an income of Rs. 2,000 per month is false.
Which of the following examples is an example of exclusion in India?
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 12
Exclusion in India: Example of Caste System - The caste system in India is a social hierarchy that has historically excluded certain castes from equal opportunities and privileges. - This system categorizes individuals into different castes based on birth, and each caste has predetermined social, economic, and occupational roles. - The lower castes, known as Dalits or Scheduled Castes, have faced discrimination and exclusion throughout history. - They have been denied access to education, employment opportunities, and social mobility. - The caste system has also led to social segregation and unequal treatment of individuals based on their caste identity. - Government policies and affirmative action measures have been implemented to address this issue, but discrimination and exclusion based on caste continue to persist in various forms. - The exclusion of certain castes from equal opportunities is an example of exclusion in India.
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 13
Who are the poorest of the poor? The answer to this question is D: All of these. The poorest of the poor includes women, old people, and children (especially girls). Here is a detailed explanation: 1. Women: - Women often face gender-based discrimination and inequality, which can lead to limited access to education, employment, and financial resources. - In many societies, women are more likely to be employed in low-paying jobs or engage in informal work, which contributes to their economic vulnerability. - Women also bear the burden of unpaid care work, which can limit their ability to participate in the formal labor market and earn a sustainable income. 2. Old people: - Elderly individuals often face economic hardships due to retirement, reduced earning capacity, and lack of social support. - Many older adults may not have access to adequate pension schemes or savings, leaving them financially insecure. - Health issues and increased dependency on others can further exacerbate their poverty situation. 3. Children (especially girls): - Children, particularly girls, are vulnerable to poverty due to various factors such as limited access to education, healthcare, and nutrition. - Discrimination against girls can result in unequal opportunities and early marriage, which can perpetuate the cycle of poverty. - Children from disadvantaged backgrounds are more likely to face inadequate living conditions and lack of essential resources. 4. All of these: - Poverty affects multiple dimensions of a person's life, and the combination of being a woman, old, or a child (especially a girl) can significantly increase the likelihood of being in a state of extreme poverty. - The intersectionality of gender, age, and childhood can compound the challenges faced by individuals in these groups. Overall, addressing the needs of women, old people, and children (especially girls) is crucial for effectively tackling poverty and achieving sustainable development.
Odisha and Bihar are one of the poorest states in India.
Detailed Solution for Test: Poverty as a Challenge- 2 - Question 14
Introduction: - Odisha and Bihar are two states in India. - The statement claims that these states are among the poorest in the country. Reasons to support the statement: 1. Economic indicators: - Both Odisha and Bihar have low per capita income compared to the national average. - The poverty rate in these states is relatively high. - They have a significant proportion of their population living below the poverty line. 2. Agricultural dependency: - Odisha and Bihar are primarily agrarian states. - However, agricultural productivity in these states is relatively low. - The majority of the population depends on farming for their livelihood, but the sector faces challenges like inadequate infrastructure, low mechanization, and lack of modern farming techniques. 3. Lack of industrial development: - Both states have struggled to attract significant industrial investment. - The industrial sector is underdeveloped, resulting in limited job opportunities and low income levels. - The lack of industrial growth contributes to the overall economic backwardness of these states. 4. Infrastructure and social indicators: - Odisha and Bihar lag behind in terms of infrastructure development. - Basic amenities like electricity, healthcare facilities, and educational institutions are inadequate in many areas. - The Human Development Index (HDI) of these states is comparatively low. 5. Migration: - A large number of people from Odisha and Bihar migrate to other states in search of better job opportunities and higher income. - This migration indicates the lack of employment opportunities and economic opportunities in their home states. Conclusion: - Based on the given reasons, it can be concluded that the statement is true. - Odisha and Bihar are among the poorest states in India due to their low economic indicators, agricultural dependency, lack of industrial development, inadequate infrastructure, and high migration rates.
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