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UPSC Exam  >  UPSC Test  >  Indian Economy CSE  >  Test: Poverty - 2 - UPSC MCQ

Poverty - 2 - Free MCQ Practice Test with solutions, UPSC Indian Economy


MCQ Practice Test & Solutions: Test: Poverty - 2 (20 Questions)

You can prepare effectively for UPSC Indian Economy for UPSC CSE with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Poverty - 2". These 20 questions have been designed by the experts with the latest curriculum of UPSC 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 20 minutes
  • - Number of Questions: 20

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Test: Poverty - 2 - Question 1
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In India share of ___ percent of low income group of people in the national income while that of ___ percent of high income group people is 45.3 percent

Detailed Solution: Question 1

Correct Answer is C i.e. 80,20

Test: Poverty - 2 - Question 2
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By which year governments are aiming to meet the Millennium Development Goals including halving the rate of global poverty?

Detailed Solution: Question 2


To answer this question, we need to determine the year in which governments aim to meet the Millennium Development Goals (MDGs) including halving the rate of global poverty.
1. Understanding the Millennium Development Goals (MDGs):
- The MDGs were a set of eight goals established by the United Nations in the year 2000.
- These goals aimed to address various global issues such as poverty, education, gender equality, healthcare, and environmental sustainability.
2. Halving the rate of global poverty:
- One of the MDGs was to reduce the rate of extreme poverty by half.
- This means lifting a significant number of people out of extreme poverty and improving their living conditions.
3. The target year:
- According to the question, we need to identify the year by which governments aim to achieve the MDGs, including the goal of halving global poverty.
- Among the given options, Option B states that the target year is 2015.
4. Conclusion:
- Governments aimed to meet the Millennium Development Goals, including halving the rate of global poverty, by the year 2015.
Therefore, the correct answer is Option B: 2015.

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Test: Poverty - 2 - Question 3
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Which among the following schemes was started in the year 2000 for the indigent senior citizens?

Detailed Solution: Question 3

Scheme started in 2000 for indigent senior citizens:
- The correct answer is A: APS (Assistance to States for Developing Old Age Homes).
- APS was started in the year 2000 by the Ministry of Social Justice and Empowerment, Government of India.
- This scheme aimed to provide financial assistance to state governments and voluntary organizations for the construction of old age homes.
- The objective was to improve the living conditions of indigent senior citizens who do not have any means of subsistence.
- The scheme aimed to provide a safe and secure environment for the elderly by establishing homes with basic amenities and medical facilities.
- The scheme also focused on providing food, clothing, and healthcare services to the residents of these old age homes.
- APS aimed to promote the welfare and well-being of senior citizens and ensure their dignity and respect in society.
- The scheme continues to provide financial assistance to eligible organizations to this day, with the aim of expanding the network of old age homes across the country.

Test: Poverty - 2 - Question 4
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Who was the first to use the concept of poverty line in India

Detailed Solution: Question 4

Introduction:
The concept of poverty line refers to the minimum income level required to meet the basic needs and necessities of an individual or a family. It is an important measure used to assess the extent of poverty in a country. In the context of India, several leaders and economists have contributed to the development and use of the poverty line concept.
Dadabhai Naroji:
Dadabhai Naroji, also known as the "Grand Old Man of India," was one of the earliest Indian economists and political leaders. He is widely recognized as the first to use the concept of poverty line in India. Naroji argued that poverty was a result of the economic exploitation of India by the British colonial rule.
Reasons for Dadabhai Naroji's Contribution:
1. Economic Analysis: Naroji extensively studied and analyzed the economic conditions in India during the colonial period. He examined the impact of British policies on Indian industries, agriculture, and the overall economy.
2. Drain Theory: Naroji developed the "Drain Theory," which highlighted how the British colonial rule drained India's wealth and resources, leading to poverty among the Indian population.
3. Poverty Line Concept: As part of his analysis, Naroji introduced the concept of poverty line to estimate the minimum income required for a person to meet their basic needs and avoid poverty.
Impact:
Naroji's work on the poverty line concept laid the foundation for future discussions and policies related to poverty eradication in India. His analysis and advocacy brought attention to the socio-economic conditions of the Indian population and the need for equitable economic development.
Conclusion:
Dadabhai Naroji was the first to use the concept of poverty line in India. His pioneering work in economic analysis and the development of the poverty line concept contributed significantly to the understanding and addressing of poverty in the country. His efforts continue to inspire and shape discussions on poverty alleviation and social welfare in India.

Test: Poverty - 2 - Question 5
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Those who regularly move in and out of poverty like small farmers are called

Detailed Solution: Question 5

Churning poor is a sub category of poor, in which a person keeps on struggling to stay above the poverty line. In this type they regularly move in and out of poverty.

Test: Poverty - 2 - Question 6
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Five state account for 70% of India’s poor which of the following is not one of them

Detailed Solution: Question 6

Introduction:
India is a country with a significant population living below the poverty line. However, the concentration of poverty is not uniform across all states. Five states in India account for 70% of the total poor population in the country.
States accounting for 70% of India's poor:
1. Uttar Pradesh (UP): Uttar Pradesh is the most populous state in India and has a high poverty rate. It is one of the states that account for a significant portion of India's poor population.
2. Bihar: Bihar is another state with a high poverty rate. It is one of the states that contribute significantly to India's poor population.
3. Madhya Pradesh (MP): Madhya Pradesh is also among the states with a high poverty rate. It is one of the states that account for a substantial portion of India's poor population.
4. West Bengal: West Bengal is another state with a significant poverty rate. It is one of the states that contribute significantly to India's poor population.
5. Rajasthan: Rajasthan is also among the states with a high poverty rate. It is one of the states that account for a substantial portion of India's poor population.
State not included:
Kerala is not one of the states that account for 70% of India's poor population. Kerala has a relatively low poverty rate compared to the aforementioned states. It has made significant progress in reducing poverty and improving social indicators.
Conclusion:
Out of the given options, Kerala is the state that does not account for 70% of India's poor population. It is important to address poverty and inequality in these states to uplift the living standards of the poor and promote inclusive growth.

Test: Poverty - 2 - Question 7
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The aim is to provide food grains at highly subsidized rates to poor families

Detailed Solution: Question 7

Antyodya anna yogna i.e AAY provides food grains to poor people at cheap price. it is supported by the government.

Test: Poverty - 2 - Question 8
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VAMBAYsands for

Detailed Solution: Question 8


The correct answer is C: Valmiki Ambedkar Awas Yojna. Let's break down the details to understand why this is the correct answer.
Explanation:
The question asks for the meaning of the acronym VAMBAY. Here is a detailed explanation:
Valmiki Ambedkar Awas Yojna (VAMBAY) is a government scheme aimed at providing housing facilities for the economically weaker sections of society, specifically targeting the Valmiki and Ambedkar community.
The scheme focuses on providing affordable housing to people who fall under the economically weaker sections (EWS) category. It aims to improve the living conditions of these sections by providing them with proper housing facilities.
Key points to note:
- The scheme is specifically designed for the Valmiki and Ambedkar community.
- It targets economically weaker sections (EWS) of society.
- The main objective is to provide affordable housing facilities.
In conclusion, VAMBAY stands for Valmiki Ambedkar Awas Yojna, a government scheme aimed at providing affordable housing facilities for the Valmiki and Ambedkar community who fall under the economically weaker sections of society.

Test: Poverty - 2 - Question 9
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UWSP and USEP are the two components of which yojna

Detailed Solution: Question 9

Swaran Jayanti Shahari Rozgar Yojna. The Urban Self-Employment Program and the Urban Wage Employment Program are two special schemes of the SJSRY initiated in December 1997, which replaced various programs operated earlier for urban poverty alleviation

Test: Poverty - 2 - Question 10
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Valmiki Ambedkar Awas Yojne was launched in

Detailed Solution: Question 10

The Valmiki Ambedkar Awas Yojne (VAMBAY) was launched in December 2001 to ameliorate the conditions of the urban slum dwellers living below the poverty line without adequate shelter.

Test: Poverty - 2 - Question 11
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A level of expenditure at which minimum food needs are met is called

Detailed Solution: Question 11

Explanation:
The correct answer is C: Poverty line expenditure.
- The poverty line refers to the minimum level of income or expenditure required to meet the basic needs of an individual or a family.
- It is the level of expenditure at which minimum food needs are met.
- This expenditure level is often determined by governments or organizations as a benchmark to measure poverty and to determine eligibility for social welfare programs.
- It serves as a threshold to identify individuals or families who are living below the poverty line and in need of assistance.
- The poverty line expenditure may vary from country to country and is often adjusted periodically to account for changes in the cost of living and inflation.
- By setting a poverty line expenditure, governments and organizations can track and monitor poverty rates, design targeted interventions, and allocate resources to address poverty and inequality.

Test: Poverty - 2 - Question 12
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The Planning Commission has defined the poverty line on the basis of recommended nutritional requirement of ____ calories per person per day for rural areas

Detailed Solution: Question 12

It was based on minimum daily requirement of 2,400 and 2,100 calories for an adult in rural and urban areas, respectively.

Test: Poverty - 2 - Question 13
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In April 1999 which programme launched

Detailed Solution: Question 13

Jawahar Gram Samridhi Yojana (JGSY) AKA Jawahar Rozgar Yojana (JRY). Launched on 1st April 1999, which was designed for the purpose of improving the quality of life of the rural poor by providing them additional gainful employment.

Test: Poverty - 2 - Question 14
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Yojna whose aim was to construct and upgrade the dwelling units for the slum dwellers

Detailed Solution: Question 14

Valmiki Ambedkar Awas Yojana (VAMBAY) is a centrally sponsored scheme for the benefit of Slum Dwellers. The objective of Valmiki Ambedkar Awas Yojana (VAMBAY) is primarily to provide shelter or upgrade the existing shelter for people living Below Poverty Line in Urban Slums, with a view to achieve the goal of “Shelter for All”.

Test: Poverty - 2 - Question 15
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The Planning Commission has defined the poverty line on the basis of recommended nutritional requirement of ____ calories per person per day for urban areas

Detailed Solution: Question 15

Explanation:
The Planning Commission has defined the poverty line on the basis of recommended nutritional requirement of ____ calories per person per day for urban areas.
To find the correct answer, we need to determine the recommended nutritional requirement of calories per person per day for urban areas.
Given:
- Poverty line is defined on the basis of recommended nutritional requirement of calories.
- We need to find the number of calories for urban areas.

- The recommended nutritional requirement of calories per person per day for urban areas is 2100 calories (Option A).
- Therefore, option A is the correct answer.
Summary:
- The poverty line is defined on the basis of recommended nutritional requirement of 2100 calories per person per day for urban areas.

Test: Poverty - 2 - Question 16
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The poverty line defined for rural areas as consumption worth rupees ____ per person a month

Detailed Solution: Question 16

Based on this, in 2011-12, the poverty line was defined for rural areas as consumption worth Rs 816 per person a month and for urban areas it was Rs 1,000.

Test: Poverty - 2 - Question 17
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The poverty line defined for urban areas as consumption worth rs ____ per person a month

Detailed Solution: Question 17

On the basis of these calculations, for the year 2011–12, the poverty line for a person was fixed at Rs 816 per month for rural areas and Rs 1000 for urban areas..

Test: Poverty - 2 - Question 18
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____ it is a cut off point on the line of distribution which divides the population into poor and non-poor

Detailed Solution: Question 18

Poverty Line:
- The poverty line is a cut-off point on the line of distribution that divides the population into poor and non-poor.
- It is a measure used to identify and quantify the level of poverty within a population.
- The poverty line is typically set by government agencies or international organizations based on various factors such as income, consumption patterns, and basic needs.
- It serves as a benchmark for determining eligibility for social assistance programs and measuring poverty rates.
- The poverty line can vary between countries and regions due to differences in living costs and standards of living.
- It is an important tool for policymakers, researchers, and organizations working to address poverty and inequality.
- The poverty line helps to monitor changes in poverty levels over time and assess the effectiveness of poverty reduction strategies.
- It provides a standardized measure for comparing poverty rates between different countries and regions.
- The poverty line is a dynamic concept that needs to be regularly updated to reflect changing economic conditions and societal norms.
- It is a critical component in the fight against poverty and serves as a starting point for developing targeted interventions and policies.

Test: Poverty - 2 - Question 19
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Under the Food for work programme the wages to the workers can be paid in

Detailed Solution: Question 19

Wages are to be paid partly in cash and partly in food grains.  Grains should be at least 5 kg of the wages, and cash should be at least 25%.

Test: Poverty - 2 - Question 20
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Poverty line is determined on the basis of monetary value minimum subsistence level which is

Detailed Solution: Question 20

There is a large gap between the conceptual understanding of poverty and its measurement in both rural and urban areas. Poverty is understood to encompass many different aspects including inadequate consumption, inadequate income and asset base, and inadequate access to basic infrastructure and services. For urban poverty, at the very least it should reflect the income needed not only to purchase sufficient food but also to obtain a secure shelter with adequate quality water, sanitation and garbage collection, to pay for transport and for keeping children at school, and to afford health care and medicines when needed. The ‘non-food’ monetary costs of avoiding poverty are generally higher in urban areas than in rural areas, as access to housing, resources and services are monetized – and usually particularly expensive in larger or more prosperous cities.

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This test contains 20 MCQs on Poverty - 2 with detailed solutions for each question. It is part of the Indian Economy for UPSC CSE course on EduRev, designed to align with the current UPSC syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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