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CPT Section C General Economics Chapter6 
Unit II 
CA. Dipti Lunawat 
 
Page 2


CPT Section C General Economics Chapter6 
Unit II 
CA. Dipti Lunawat 
 
Absolute & Relative Party 
Poverty in India 
Causes of Poverty 
Government Programmes  for Poverty Alleviations 
Page 3


CPT Section C General Economics Chapter6 
Unit II 
CA. Dipti Lunawat 
 
Absolute & Relative Party 
Poverty in India 
Causes of Poverty 
Government Programmes  for Poverty Alleviations 
Related to 
Income or 
Consumption 
Distribution 
Not related to 
Income or 
Consumption 
Distribution 
Absolute poverty 
Relative Poverty 
Page 4


CPT Section C General Economics Chapter6 
Unit II 
CA. Dipti Lunawat 
 
Absolute & Relative Party 
Poverty in India 
Causes of Poverty 
Government Programmes  for Poverty Alleviations 
Related to 
Income or 
Consumption 
Distribution 
Not related to 
Income or 
Consumption 
Distribution 
Absolute poverty 
Relative Poverty 
Absolute Poverty 
Less Developed countries 
Consumption Standard is Laid 
Poor who falls below Minimum 
Standard 
Measured as No. or % of such 
poor  
Page 5


CPT Section C General Economics Chapter6 
Unit II 
CA. Dipti Lunawat 
 
Absolute & Relative Party 
Poverty in India 
Causes of Poverty 
Government Programmes  for Poverty Alleviations 
Related to 
Income or 
Consumption 
Distribution 
Not related to 
Income or 
Consumption 
Distribution 
Absolute poverty 
Relative Poverty 
Absolute Poverty 
Less Developed countries 
Consumption Standard is Laid 
Poor who falls below Minimum 
Standard 
Measured as No. or % of such 
poor  
Relative Poverty 
 Developed countries 
No Consumption Standard is 
Laid 
Based on Income or 
consumption Expenditure 
Gini Co- Efficient is used 
Read More
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FAQs on PPT 6.1 - Poverty - Business Economics for CA Foundation

1. What is poverty?
Ans. Poverty is a state of deprivation where individuals or communities lack the financial resources and basic necessities needed to meet their basic needs, such as food, shelter, and healthcare. It is often characterized by low income levels, inadequate education, limited access to clean water and sanitation, and high vulnerability to economic and social shocks.
2. How does poverty affect individuals and communities?
Ans. Poverty has wide-ranging effects on individuals and communities. It can lead to hunger, malnutrition, and poor health outcomes. Lack of access to quality education and limited opportunities for skill development can perpetuate the cycle of poverty. Poverty also increases the vulnerability of individuals and communities to natural disasters, conflicts, and economic downturns, making it harder for them to recover and improve their living conditions.
3. What are the causes of poverty?
Ans. Poverty is a complex issue with multiple causes. Some common causes include lack of education and skills, limited job opportunities, unequal distribution of resources, social exclusion, and discrimination based on gender, race, or ethnicity. Other factors such as political instability, corruption, and inadequate social welfare systems can also contribute to the persistence of poverty in certain regions or countries.
4. How can poverty be alleviated?
Ans. Poverty alleviation requires a multi-faceted approach. It involves addressing the root causes of poverty through policies and programs that promote inclusive economic growth, improve access to quality education and healthcare, ensure social protection for vulnerable groups, and reduce inequalities. Additionally, empowering individuals and communities through skills development, entrepreneurship, and capacity-building initiatives can help break the cycle of poverty and create sustainable livelihood opportunities.
5. What is the role of governments and international organizations in combating poverty?
Ans. Governments play a crucial role in poverty reduction by formulating and implementing policies and programs that prioritize poverty alleviation. They can create an enabling environment for economic growth, invest in social infrastructure, and ensure equitable distribution of resources. International organizations, such as the United Nations and World Bank, provide financial and technical assistance to countries, support policy dialogue, and promote global cooperation to address poverty at a global scale. Collaboration between governments, civil society, and international organizations is essential to effectively combat poverty.
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