“POVERTY” LESSON-4
INDIAN ECONOMIC DEVELOPMENT CLASS-12
POVERTY POVERTY
Q1. The main reason for chronic indebtedness among the poor’s is A. They borrow money from lenders who charge high rate of interest
B. They work as landless agricultural labourers
C. They are not able to negotiate their legal wages from employers
D.They are landless
Ans. A
Explanation:- Poor people suffer from chronic indebtedness as they borrow money from money lenders on high rate of interest and they are
not able to pay back the loan. Hence ,A is the correct option.
Q2. How do economists identify the poor?
A. On the basis of their wealth
B. On the basis of annual income
C. On the basis of occupation & asset ownership
D.On the basis of savings
Ans: C
Explanation:- Economists identify the poor on the basis of their occupation & asset ownership. Hence, C is the correct option.
Q3. Prior to independence who was the first to discuss the concept of poverty line?
A. VKRV Rao
B. RC Desai
C. Findlay Shirras
D.Dadabhai Naoroji
Ans. D
Explanation:- Prior to independence Dadabhai Naoroji was the first to discuss the concept of poverty line he determined poverty by jail cost living method .Hence, B is the correct option.
Q4. MATCH THE FOLLOWING

Q5.For defining poverty people are divided as – & –
A. Poor & Non poor
B. Rich & Poor
C. Millionaires & Poor
D.None
Ans. A
Explanation:- For defining poverty people are divided as poor & non
poor. Hence, A is the correct option.
Q6. People who are always poor & usually poor are grouped together as:-
A. Urban poor
B. Chronic poor
C. Transient poor
D. Never poor
Ans. B
Explanation:- People who are always poor and usually poor are grouped
together as chronic poor. Hence, B is the correct option.
Q7. – regularly move in & out of poverty
A. Chronic poor
B. Transient poor
C. Churning poor
D.Both B & C
Ans. D
Explanation:- Churning poor are those people who regularly move in &
out of poverty like seasonal workers, transient poor include both churning poor and occasionally poor.Hence,D is the correct option.
Q8. Transient poor include –
A. Churning poor
B. Occasionally poor
C. Never poor
D.A & B both
Ans.
Explanation:- Transient poor include both churning poor & occasionally
poor. Hence, D is the correct option.
Q9. Non poor are those who –
A. Live above poverty line
B. Live below poverty line
C. Live in between of poverty line
D.None
Ans. A
Explanation:- Non poor are those people who live above poverty line .
Hence, A is the correct option.
Q10. Dadabhai Naoroji used which method to analyse poverty?
A. Monthly per capita expenditure
B. Jail cost living method
C. Minimum calorie intake method
D.A & B both
Ans. B
Explanation:- Dadabhai naoroji used jail cost living method to analyse
poverty. Hence,B is the correct option.
Q11. Who determined poverty line on the basis of minimum daily
intake of calories?
A. Jail cost living method
B. Task force on projection of minimum needs & effective
consumption demand
C. Monthly per capita expenditure
D.National Sample Survey Organisation
Ans. B
Explanation:- Task force on projection of minimum needs & effective
demand determined poverty line on the basis of minimum daily intake
of calories. Hence, B is the correct option.
Q12.Which method expresses the money required to consume
minimum calorie intake to determine poverty?
A. Monthly per capita expenditure
B. Jail cost living method
C. Task force method
D.None
Ans. A
Explanation:- MPCE method expresses the money required to consume
minimum calorie intake to determine poverty. Hence, A is the correct
option.
Q13. Amartya Sen developed which method to estimate poverty?
A. Sen index
B. HDI index
C. Poverty gap index
D.Squared poverty gap
Ans.A
Explanation:- Amartya Sen developed ‘Sen Index’ to estimate poverty.
Hence, A is the correct option.
Q14.When the number of poor is estimated as the proportion of people below the poverty line it is known as –
A. Tail count ratio
B. Head count ratio
C. Poverty ratio
D.Non poor ratio
Ans. B
Explanation:- The percentage of population below poverty line is called
head count ratio. Hence, B is the correct option.
Q15.The official data on poverty is made available to public by the –
A. NSSO
B. CSO
C. Ministry of Finance
D.Planning Commission
Ans. D
Explanation:-The official data on poverty is made available to public by
Planning Commission (NITI AYOG). Hence D, is the correct option.
Q16. Aggregate poverty is the sum of –
A. Total poverty
B. Annual poverty
C. Individual poverty
D. None
Ans. C
Explanation:- Aggregate poverty is the sum of individual poverty.
Hence, C is the correct option.
Q17. What is the principal means of livelihood of rural people?
A. Fishing
B. Mining
C. Agriculture
D.Hunting
Ans. C
Explanation:- Agriculture is the principal means of livelihood of rural
people . Hence, C is the correct option.
Q18. Primary asset of rural people is –
A. Home
B. Land
C. Livestock
D.Factories
Ans. B
Explanation:- Land is the primary asset of rural people in India ,
ownership of land is a symbol of status in rural areas. Hence, B is the
correct option.
Q19. Casual labourers are those who –
A. Have job security & assets
B. Are fully employed throughout the year
C. A & B both
D. Don’t have job security & assets
Ans. D
Explanation:- Casual labourers are those who don’t have job security &
assets. Hence, D is the correct option.
Q20. What is the primary objective of the developmental strategies of
the govt?
A. Social Justice
B. Growth
C. Self reliance
D.Modernisation
Ans. A
Explanation:- The primary objective of the developmental strategies of
the govt is social justice. Hence, A is the correct option.
Q21. Food for work programme was initiated in which year?
A. 1965
B. 1979
C. 1970
D. 1995
Ans. C
Explanation:-Food for work programme was initiated in the year 1970.
Hence, C is the correct option.
Q22. Which of the following programmes aims at creating self
employment?
A. Rural employment generation programme
B. Prime minister’s rozgar yojna
C. Swarna Jayanti shahari rozgar yojana
D.All of the above
Ans. D
Explanation:- All the given programmes aim at creating self
employment. Hence, D is the correct option.
Q23. Which programme aims at creating self employment & wage
employment in urban areas?
A. Swarna Jayanti Shahari Rozgar Yojana
B. Rural Employment Generation Programme
C. Prime Minister Rozgar Yojana
D.None
Ans. A
Explanation:- SJSRY aims at creating self employment & wage
employment in urban areas. Hence, A is the correct option.
Q24. Swarna Jayanti Gram swarojgar yojana aims at:-
A. Promoting micro enterprises & establishing Self Help Groups
B. Promoting employment in urban areas
C. Providing nutrition to children
D.Providing road connectivity
Ans. A
Explanation:- SJGSY aims at promoting micro enterprises & establishing
SHG’s. Hence, A is the correct option.
Q25. Which yojana has been restructured as National Rural Livelihood
Mission?
A. Swarna Jayanti shahari rozgar yojana
B. Rural Employment generation programme
C. MGNREGA
D.Swarna Jayanti gram swarozgar yojana
Ans. D
Explanation:- Swarna Jayanti gram swarozgar yojana has now been
restructured as NRLM . Hence, D is the correct option.
Q26. Which programme provide a minimum of 100 days employment
in a year?
A. NRLM
B. PMGSY
C. Swarojgar Yojana
D.MGNREGA
Ans. D
Explanation:- Mahatma Gandhi National Rural employment(2005)
guarantee act provides a minimum of 100 Days work in a year. Hence, D
is the correct option.
Q27. Which of the following programmes aim at improving food &
nutritional status of the poor?
A. Public Distribution System
B. Integrated child development scheme
C. Midday meal scheme
D.All of the above
Ans. D
Explanation:- PDS, ICDS & Midday meal scheme aim at improving food
& nutritional status of the poor . Hence, D is the correct option.
Q28. Which of the following programmes attempts to develop
infrastructure & housing conditions?
A. Pradhan Mantri Gram Sadak Yojana
B. Pradhan Mantri Gramodaya Yojana
C. Valmiki Ambedkar Awas Yojana
D.All the above
Ans. D
Explanation:- PMGSY, PMGY, VAAY attempts to develop infrastructure & housing conditions in India . Hence, D is the correct option.
Q29.This programme is a social security programme launched by govt, under this elderly people who not have anyone to take care of are given pensions poor women & widows are also covered under this.
Name the programme
A. MNREGA
B. National Social Assistance Programme
C. National Social Security Programme
D.Sampoorna Vriddha Vikas Yojana
Ans. B
Explanation:- Govt launched National social security programme to
benefit elderly people, poor people & widows . Hence , B is the
correct option.
Q30. Pradhan Mantri Jan Dhan Yojana was launched in which year?
A. 2015
B. 2014
C. 2017
D. 2005
Ans. B
Explanation:- PMJDY was launched in 2014 under this people are
encouraged to open bank accounts . Hence, B is the correct option.
Q31. The govt’s approach to poverty reduction was of – dimensional
A. Three
B. One
C. Two
D.Four
Ans. A
Explanation:- Govt’s approach on poverty reduction was three
dimensional first growth oriented approach second, poverty alleviation
programmes & third providing minimum basic amenities . Hence, A is
the correct option.
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