Worksheet Solutions: Poverty | Economics Class 12 - Commerce PDF Download

Section 1: Fill in the Blanks 

Q1: The poverty line distinguishes between the two groups: ____________ and ____________.
Ans: poor, non-poor
The poverty line is a threshold that separates the population into two distinct groups: those considered "poor," falling below the defined poverty line, and those categorized as "non-poor" who are above the poverty line in terms of income or consumption.

Q2: ____________ is one of the types of poverty where individuals frequently move in and out of poverty.
Ans: Churning poor
Churning poverty refers to a type of poverty in which individuals or households experience frequent fluctuations in their economic status, moving in and out of poverty due to various factors such as irregular employment, income volatility, or changing circumstances.

Q3: The ____________ approach emphasizes rapid industrial development and agricultural transformation for poverty reduction.
Ans: growth-oriented
The growth-oriented approach to poverty reduction focuses on promoting rapid economic growth, industrial development, and agricultural transformation. The idea is that sustained economic growth will eventually lead to poverty reduction and improvement in living standards.

Q4: The Mahatma Gandhi National Rural Employment Guarantee Act guarantees ____________ days of wage employment in a year.
Ans: 100
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare scheme in India that guarantees 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.

Q5: ____________ is the measurement of the number of poor people as a proportion of the population who fall below the poverty line.
Ans: Head Count Ratio
Head Count Ratio, also known as the poverty headcount ratio, is a measurement used to determine the proportion of a population that falls below the poverty line. It quantifies the percentage of individuals or households living in poverty.

Q6: The British Raj impoverished millions in India by ____________ natural resources and industries for the benefit of the British.
Ans: exploiting
The British Raj, during the colonial period, impoverished millions in India by exploiting the country's natural resources and industries for the economic benefit and interests of the British Empire. This exploitation had detrimental effects on India's economy and people.

Q7: The Pradhan Mantri Jan-Dhan Yojana encourages people in India to open ____________.
Ans: bank accounts
The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a financial inclusion scheme in India that encourages people to open bank accounts, especially targeting those without access to banking services. It aims to ensure financial inclusion and promote saving and investment habits.

Q8: The First Five Year Plan (1951-56) focused on ____________ and ____________ as a means to bring about economic and social change.
Ans: economic change, social change
The First Five Year Plan (1951-1956) in India emphasized both economic change and social change as key strategies to drive the nation towards development. Economic reforms and improvements were coupled with initiatives for social development, aiming to uplift the overall living standards of the population.

Q9: The concept of a poverty line was first discussed by ____________ in pre-independent India.
Ans: Dadabhai Naoroji
Dadabhai Naoroji, a prominent Indian intellectual and political leader during the pre-independent era, is credited with discussing the concept of a poverty line and proposing methods to estimate poverty in India. He highlighted the issue of poverty and its impact on the Indian population.

Q10: The ____________ Index is a poverty measurement tool developed by Nobel Laureate Amartya Sen.
Ans: Sen
The "Sen Index" refers to a poverty measurement tool developed by Nobel Laureate Amartya Sen. It provides a multidimensional perspective on poverty, considering various aspects such as health, education, and living standards, offering a more comprehensive understanding of poverty beyond just income or consumption levels.

Section 2: Assertion and Reason 

Q1: Assertion: The growth-oriented approach aims for rapid industrial development and agricultural transformation.
Reason: It is believed that economic growth will benefit all sections of society, including the poor.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but the Reason is false.
(d) Assertion is false, but the Reason is true.
Ans: (a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.

Q2: Assertion: The Pradhan Mantri Jan-Dhan Yojana encourages people in India to open bank accounts.
Reason: It aims to improve financial inclusion and access to banking services.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but the Reason is false.
(d) Assertion is false, but the Reason is true.
Ans: (a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.

Q3: Assertion: Poverty can be attributed to broader economic issues such as insufficient investment in capital.
Reason: Insufficient investment in capital leads to lower income and increased poverty.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but the Reason is false.
(d) Assertion is false, but the Reason is true.
Ans: (a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.

Q4: Assertion: The Minimum Basic Amenities approach aims to provide supplementary consumption for the poor.
Reason: It involves public expenditure on social consumption needs such as education and health.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but the Reason is false.
(d) Assertion is false, but the Reason is true.
Ans: (a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.

Q5: Assertion: Active participation from the poor is necessary for successful program implementation in poverty alleviation.
Reason: Poverty alleviation can only be achieved when the poor participate in the growth process.
(a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation of the Assertion.
(c) Assertion is true, but the Reason is false.
(d) Assertion is false, but the Reason is true.
Ans: (a) Both Assertion and Reason are true, and Reason is the correct explanation of the Assertion.

Section 3: Very Short Answers

Q1: What are the two main categories for defining poverty?
Ans: Those who are poor and those who are non-poor.

Q2: Name one category of poverty based on frequent movements in and out of poverty.
Ans: Churning poor.

Q3: What does the Head Count Ratio measure?
Ans: The measurement of the number of poor people as a proportion of the population who fall below the poverty line.

Q4: What is the primary aim of the growth-oriented approach in poverty reduction?
Ans: Economic growth, benefiting all sections of society, including the poor.

Q5: Name one program aimed at generating wage employment for unskilled individuals in rural areas.
Ans: Mahatma Gandhi National Rural Employment Guarantee Act.

Q6: According to the text, what does poverty stem from?
Ans: Social, economic, and political inequalities, social exclusion, unemployment, indebtedness, and unequal distribution of wealth.

Q7: What was the main objective of the First Five Year Plan (1951-56)?
Ans: Economic and social change due to poverty and income, wealth, and opportunity inequalities.

Q8: What does the Pradhan Mantri Jan-Dhan Yojana encourage people to do?
Ans: Open bank accounts.

Q9: What was the earliest approach in the world to alleviate poverty through public expenditure?
Ans: Minimum Basic Amenities approach.

Q10: What type of poverty has individuals who have never experienced poverty?
Ans: Non-poor.

Section 4: Short Answers

Q1: Explain the types of poverty mentioned in the text.
Ans: The types of poverty mentioned are absolute poverty, extreme poverty, general poverty, chronic poor, churning poor, transient poor, and non-poor. Absolute poverty refers to a severe deprivation of basic human needs, while extreme poverty is an even more dire condition. General poverty encompasses a broader category of impoverished individuals. Chronic poor are those who are consistently poor, churning poor frequently move in and out of poverty, and transient poor experience temporary financial hardship. Non-poor individuals have never experienced poverty.

Q2: Describe the growth-oriented approach in poverty reduction.
Ans: The growth-oriented approach emphasizes rapid economic growth, including a significant increase in GDP and per capita income. It posits that this growth will benefit all sections of society, including the poor. This approach was a primary focus during the 1950s and early 1960s and involved rapid industrial development and agricultural transformation, particularly through initiatives like the green revolution.

Q3: Briefly explain the employment generation approach in poverty reduction.
Ans: The employment generation approach aims to increase incomes and employment opportunities for the poor by creating additional assets and generating work. It was introduced in the Third Five Year Plan (1961-66) and has since been expanded through various poverty alleviation programs, such as the Food for Work program. The approach focuses on self-employment and wage employment programs.

Q4: Discuss the Minimum Basic Amenities approach in poverty reduction.
Ans: The Minimum Basic Amenities approach aims to improve the living standards of people through public expenditure on social consumption needs, including provision of food grains at subsidized rates, education, health, water supply, and sanitation. It aims to provide supplementary consumption for the poor, create employment opportunities, and bring about improvements in health and education.

Q5: Explain the challenges identified in the successful implementation of poverty alleviation programs.
Ans: The challenges include non-poor benefiting from poverty alleviation programs due to unequal land and asset distribution, inadequate resources allocated compared to the magnitude of poverty, dependence on government and bank officials for implementation, inefficient resource use, lack of participation from local level institutions, and corruption within the implementation process.

Q6: Discuss the importance of active participation from the poor in poverty alleviation.
Ans: Active participation from the poor is crucial for the successful implementation of poverty alleviation programs. Poverty can only be eradicated when the poor actively participate in the growth process and contribute to it. Social mobilization empowers poor people, creates employment opportunities, leads to income growth, skill development, better health, and literacy, ultimately addressing the root causes of poverty.

Q7: Describe some major programs for the upliftment of the poor mentioned in the text.
Ans: The major programs include the Public Distribution System, Integrated Child Development Scheme, Midday Meal Scheme, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Gramodaya Yojana, and Valmiki Ambedkar Awas Yojana. These programs aim to enhance the food and nutritional condition of impoverished individuals, improve housing conditions, and provide necessary infrastructure.

Q8: Discuss the progress and challenges in poverty alleviation in India as per the text.
Ans: India has made progress in poverty alleviation, with some states showing a decrease in absolute poverty below the national average for the first time since independence. However, challenges persist, including hunger, malnourishment, illiteracy, and lack of basic amenities in many parts of India. The policies have not undergone significant transformation, and some sections of the population remain trapped in poverty despite progress.

Section 5: Long Answers

Q1: Discuss the historical background and development of the poverty line concept in India.
Ans:

• The concept of a poverty line was first discussed by Dadabhai Naoroji in pre-independent India.
• Naoroji used the cost of a prisoner's food as a basis and made adjustments to include children in the estimate.
• He arrived at the average poverty line by taking the weighted average of consumption of adults, children consuming little, and children consuming half the amount of an adult's diet.
• In post-independent India, various attempts were made to create a mechanism for identifying the number of poor, leading to the formation of expert groups and studies.
• However, the existing approach has limitations in identifying the most impoverished individuals and considering factors beyond income and assets.

Q2: Analyze the causes of poverty in India as outlined in the text.
Ans:

• Poverty in India is attributed to institutional and social factors affecting the lives of the poor.
• Factors include lack of access to quality education, limited opportunities for skill acquisition, limited access to healthcare services, and discriminatory practices based on caste, religion, and other factors.
• Social, economic, and political inequalities, social exclusion, unemployment, indebtedness, and unequal distribution of wealth also contribute to poverty.
• Broader economic issues like insufficient investment in capital, inadequate infrastructure, low demand, population pressure, and a lack of social welfare programs further exacerbate poverty.

Q3: Evaluate the policies and programs for poverty alleviation in India.
Ans:

• The government's policies aim at balanced economic development, social justice, and poverty alleviation.
• The growth-oriented approach focuses on economic growth to benefit all, emphasizing rapid industrial development and agricultural transformation.
• The employment generation approach aims at creating additional assets and work for the poor.
• The Minimum Basic Amenities approach provides public expenditure on social consumption needs.
• However, challenges such as unequal distribution of resources, corruption, and dependence on officials hinder successful implementation.

Q4: Discuss the progress and challenges in poverty alleviation in India according to the text.
Ans:

• Progress has been made in poverty alleviation, with some states having a lower proportion of poor than the national average for the first time.
• However, challenges persist, including hunger, malnourishment, illiteracy, and lack of basic amenities in many parts of India.
• The policies have not undergone significant transformation, and some sections of the population remain trapped in poverty despite progress.
• Active participation from the poor is crucial for successful program implementation, and addressing social, economic, and political inequalities is essential for effective poverty alleviation.