MCQs TERM-1 POVERTY CHAPTER-4

MCQs POVERTY INDIAN ECONOMIC DEVELOPMENT CHAPTER 4

1. Consider the statements:
I. Providing minimum basic needs to the people & reduction of poverty have been the major aims of independent India
II. Five year plans laid emphasis on the upliftment of poorest of poor (Antyodaya)
III. More than one-fifth of the world’s poor live in India
IV. Poor people posses few assets & reside in Pucca settlements
Which of the statements is/are not  correct?
A. IV only
B. II & III only
C. I,II,III & IV
D. III only

Ans. A

2. Read the following statements carefully and choose the correct alternative from the following:
Statement 1 – Starvation & hunger are the key features of the poorest households
Statement 2 – Poor people falls into chronic indebtedness by borrowing money from moneylenders at high rate of interest
A. Statement 1 is true and Statement 2 is false
B. Both the statements are false.
C. Both the statements are true.
D. Statement 2 is true and Statement 1 is false

Ans. C

3.People from rural areas migrate to urban areas in search of –
A. Food
B. Water
C. Land
D. Employment

Ans. D

4.Consider the statements:
I. The primary cooking fuel of poors is firewood & cow dung cake
II. Economists identify the poor on the basis of their occupation and ownership of assets
III. Rural poor are the overflow of urban poor , migrated to rural areas
IV. Urban poor work as agricultural labourers & cultivators with small landholdings
Which of the statements is/are correct?
A. IV & III only
B. I & II only
C. I,II,III & IV
D. III only

Ans. B

5. In pre-independent India who was the first to discuss the concept of poverty line-
A. VKRV Rao
B. Sukumar Sen
C. Dadabhai Naoroji
D. William Digby

Ans. C

Calculated the jail cost of living, according to his estimates the average poverty line was three-fourth of adult jail cost of living

6. Match the following

Ans. 1-b , 2- a , 3-c

7. Read the following statements carefully and choose the correct alternative from the following:
Statement 1 – The poverty line separates the poor & non-poor
Statement 2 – Chronic poor includes people who are always poor & usually poor
A. Statement 1 is true and Statement 2 is false
B. Both the statements are false.
C. Both the statements are true.
D. Statement 2 is true and Statement 1 is false

Ans. C

8. Consider the following statement & identify the incorrect statement
A. Transient poor includes churning poor & occasionally poor
B. Poverty line can be determined by the monetary value of the minimum calorie intake (MPCE)
C. Poverty line was defined for rural areas as consumption worth Rs.816 per person in a month and for urban areas it was Rs. 1000
D. MPCE is the best method to identify the poor

Ans. D

MPCE expresses the money required to consume minimum calorie intake to determine poverty

MPCE groups all the poor together and doesn’t differentiate between the very poor & other poor

*Churning poor – regularly move in & out of poverty like seasonal workers

*Occasionally poor – who are rich but sometimes due to bad luck may fall into poverty

9. Read the following statements carefully and choose the correct alternative from the following:
Statement 1 – Factors associated with poverty also needs to be considered to develop poverty line
Statement 2 – Aim of poverty should be to improve human lives by limiting the range of things that a person could be & could do
A. Statement 1 is true and Statement 2 is false
B. Both the statements are false.
C. Both the statements are true.
D. Statement 2 is true and Statement 1 is false

Ans. A

*Aim of poverty should be to improve human lives by expanding the range of things that a person could be & could do

10. Fill in the blank-
______ is about removing the obstacles to the things that a person can do in life , such as illiteracy ,lack of access to resources.
A. Growth
B. Development
C. Poverty Removal
D. Both A & B

Ans. B

11. 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

12. 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

Per capita daily requirement of calories in rural areas =2400 calories

Per capita daily requirement of calories in = 2100 calories

13. Amartya Sen developed which method to estimate poverty?
A. Sen index
B. HDI index
C. Poverty gap index
D .Squared poverty gap

Ans. A

14. Read the following statements carefully and choose the correct alternative from the following:
Statement 1 – Head count ratio refers to proportion of people above the poverty line
Statement 2 – NSO collects expenditure & consumption data  and NITI AYOG releases official data on poverty
A. Statement 1 is true and Statement 2 is false
B. Both the statements are false.
C. Both the statements are true.
D. Statement 2 is true and Statement 1 is false

Ans. D

*Head count ratio refers to proportion of people below the poverty line

15. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 –Poverty line in India is defined in terms of monetary value of the minimum nutritional (calorific) requirements of an individual in a day.
Statement 2 – The definition of poverty line in monetary terms has not changed over the years
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Ans. C

16. Fill in the blanks-
____________ is not a reason for poverty in India.
A. population explosion
B. rise in per capita GDP
C. low capital formation
D. socio-economic exclusion

Ans. B

17. Poors mainly reside in _____
A. Urban Areas
B. Sub-urban areas
C. Cities
D. Villages

Ans. D

*More than three fourth of the poor in India still live in villages

18. Consider the following statements :
I. Social-economic & political inequality
II. Unemployment
III. Indebtedness
IV. Equal distribution of wealth
Which of these statements is not true about poverty?
A. III only
B. IV only
C. III & I
D. II only

Ans. B

19. Which of the following explains poverty?(Choose the correct alternative)
I. Lack of infrastructure & Lack of demand
II. Population pressure
III. Lack of social welfare nets
IV. Low capital formation
A. I & II only
B. III only
C. II only
D. I ,II,III ,IV

Ans. D

20. Read the following statements – Assertion (A) and Reason (R) & Choose the correct option
Assertion (A) – Impact of British raj was positive for rural areas
Reason (R) – British raised rural taxes that enabled merchants & moneylenders to become large land owners
A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
B. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
C. Assertion (A) is true but Reason (R) is false.
D. Assertion (A) is false but Reason (R) is true

Ans. D

21. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – Agriculture is the principal means of livelihood even today
Statement 2 – Land is the primary asset of rural people
a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Ans. A

22. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – After Independence govt. tried to redistribute land
Statement 2 – Land redistribution was very successful, all the states implemented this policy
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false 

Ans. C

*Land redistribution was successful to a limited extent only , as large sections of agricultural workers were not able to farm small holdings due to lack of capital , also most of the Indian states failed to implement land redistribution policies

23. Read  following statements carefully and choose the correct alternatives given below:
Statement 1 – Survival of large section of the rural poor depends on subsistence crops & sometimes on livestock
Statement 2 – Per head availability of land for cultivation has declined due to population growth and lack of alternative employment source
A. Both the statements are false.
B. Statement 1 is true and Statement 2 is false
C. Statement 2 is true and Statement 1 is false
D. Both the statements are true 

Ans. D

24. Read the following statements – Assertion (A) and Reason (R) & Choose the correct option
Assertion (A) – Farmers are committing suicide in India
Reason (R) – They are not able to payback the loans taken for cultivation & other domestic needs due to crop failure
A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
B. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
C. Assertion (A) is true but Reason (R) is false.
D. Assertion (A) is false but Reason (R) is true

Ans. A

25. _________are among the most vulnerable in society , as they have no job security & limited skills
A. Self employed
B. Casual labourers
C. Rural people
D. Seasonal workers

Ans. B

26. Poverty is closely related to nature of _____________
A. Rural livelihood
B. GDP growth
C. Deflation
D. Employment

Ans. D

27. Read  following statements carefully and choose the correct alternatives given below:
Statement 1 – Equal distribution of income & assets has led to the persistence of poverty in India
Statement 2 – The gap between rich & poor has widened over the years
A. Both the statements are false.
B. Statement 1 is true and Statement 2 is false
C. Statement 2 is true and Statement 1 is false
D. Both the statements are true 

Ans. C

28. _________ has the largest area under cotton
cultivation in the world
A. India
B. China
C. Pakistan
D. U.K.

Ans. A

29. What is the primary objective of the developmental strategies as per the Indian constitution & FYPs?
A. Improving health and education
B. Economic Growth
C. Social Justice
D. Reducing Inflation

Ans. C

30. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – Government of India adopted ‘Trickle Down Approach’ to alleviate poverty to benefit the last man at the bottom of the pyramid.
Statement 2 – Empirical data over the years have shown that trickle-down theory did not yield desired results in India.
Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. A

*  Economists state that the benefits of economic growth have not trickled down to the poor.

31. Read  following statements carefully and choose the correct alternatives given below:
Statement 1 – It was felt that green revolution in select regions would benefit the underdeveloped region & more backward sections of the community
Statement 2 – The Green revolution widened the disparities regionally , between small & large farmers
A. Both the statements are false.
B. Statement 1 is true and Statement 2 is false
C. Statement 2 is true and Statement 1 is false
D. Both the statements are true

Ans. D

32. The poverty alleviation programme approach was initiated from which of the Five Year Plans?
A. First FYP
B. Fifth FYP
C. Third FYP
D. Tenth FYP

Ans. C

1961-66, Aim was to raise the incomes & employment for poor through creation of additional assets & means of work generation

33. Which of the following is not an example of self-employment programmes?
A. Rural Employment Generation Programme
B. PM Rozgar Yojana
C. Swarna Jayanti Shahri Rozgar Yojana
D. Pradhan Mantri Jan Dhan Yojana

Ans. D

• Prime Minister’s Employment Generation Programme (PMEGP)= REGP + PM Rozgar Yojana
• Khadi & Village Industried Comission is implementing it

34. Food for work programme was initiated in which year?
A. 1960s
B. 1970s
C. 1980s
D. 1990s

Ans. B

*launched in 1977

35. 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. Smart Cities Mission

Ans. A

36. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – Self Help Groups are being encouraged
Statement 2 – Govt. provides partial financial assistance to SHGs
Alternatives:
A. Both the statements are false
B. Both the statements are true
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. B

37. Which program launched in 2005 provide guaranteed wage employment of 100 days in a year?
A. Pradhan Mantri Rozgar Yojana
B. PMGSY
C. Swarojgar Yojana
D.MGNREGA

Ans. D

*Mahatma Gandhi National Rural Employment Guarantee Act

*Nearly five crore households get employment opportunities under this law.

38. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – India was among the pioneers in the world to envisage that through public expenditure on social consumption needs people’s living standards could be improved
Statement 2 – Public Distribution System, Poshan Abhiyan & Mid-Day Meal scheme aim at improving food & nutritional status of the poor
Alternatives:
A. Both the statements are false
B. Both the statements are true
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. B

39. Which of the following programmes attempts to develop infrastructure & housing conditions?
A. Pradhan Mantri Gram Sadak Yojana
B. Pradhan Mantri MUDRA Yojana
C. Valmiki Ambedkar Awas Yojana
D. A & C Both

Ans. D

40. This programme is a social security programme launched by govt, under this elderly people who do 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

41. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – Pradhan Mantri Jan-Dhan Yojana was launched in 2015
Statement 2 – Under PMJDY people are encouraged to open bank accounts to promote saving habits and intends to transfer all the benefits of government schemes & subsidies  to account holders directly
Alternatives:
A. Both the statements are false
B. Both the statements are true
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans.D

*Launched in 2014

* Each bank account holder is also entitled to Rs. 1- 2 lakh accidental insurance cover

42. The govt’s approach to poverty reduction was_____ dimensional
A. Three
B. One
C. Two
D. Four

Ans. A

Govt’s approach on poverty reduction was three dimensional first growth oriented approach second, poverty alleviation programmes & third providing minimum basic amenities

43. Match the following:

Ans. 1-c, 2-a, 3-d, 4-b

44. Read the following statements and choose the correct alternative from the following
Statement 1: Economists identify the poor on the basis of their occupation and ownership of assets.
Statement 2: Urban poor are mostly an overflow of rural poor.

Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. A

45. Read the following statements and choose the correct alternative from the following
Statement 1:  The percentage of absolute poor in some states is now well below the national average
Statement 2: Hunger, malnourishment, illiteracy and lack of basic amenities continue to be a common feature in many parts of India
Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. A

* The policy towards poverty alleviation has evolved in a progressive manner, over the last seven decades, it has not undergone any radical transformation

46.Consider the following statements and identify the incorrect statement(s)
A. Due to unequal distribution of land and other assets, the benefits from direct poverty alleviation programmes have been appropriated by the non-poor
B. The amount of resources allocated for these programmes is always sufficient.
C. Officials are ill motivated, inadequately trained, corruption-prone and vulnerable to pressure from a variety of local elites,
the resources are inefficiently used and wasted.
D. Non-participation of local level institutions in programme implementation.

Ans. B

*Amount of resources allocated for these schemes & programmes is not sufficient

47. Read the following statements and choose the correct alternative from the following
Statement 1: Government policies have also failed to address a majority of vulnerable people who are living on or just above the poverty line
Statement 2: High growth alone is sufficient to reduce poverty
Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. C

*High growth alone is not sufficient to reduce poverty

Hope you find this helpful , subscribe to my channel