Poverty in India
ICSE · Class 11 · Economics
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For the year 2011-12, the Monthly Per Capita Consumption Expenditure (MPCE) poverty line was fixed at ₹816 for rural areas and ₹1,000 for urban areas. Despite urban areas requiring FEWER calories (2,100 vs 2,400), the urban poverty line is set HIGHER. Which of the following best explains this apparent contradiction?
A family of 5 lives in a rural area and earns ₹3,500 per month. Based on the 2011-12 poverty line of ₹816 per person per month for rural areas, which of the following statements is CORRECT about this family?
According to Table 9.1 in the chapter, the absolute number of people below the poverty line INCREASED from 321.3 million in 1973-74 to 407.2 million in 2004-05, yet the poverty RATIO fell from 54.9% to 37.2% during the same period. What is the most logical explanation for this?
Nurkse's 'Vicious Circle of Poverty' operates on both the supply side and the demand side. On the DEMAND side, which of the following correctly represents the sequence of the vicious circle?
Sample Questions
Which of the following is a key DRAWBACK of the MPCE (Monthly Per Capita Consumption Expenditure) method of determining the poverty line?
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It does not account for social factors like illiteracy, ill health, lack of access to resources, and political freedoms.
Step 1: The MPCE method uses monetary expenditure on food and a few select items as a proxy for income to determine whether someone is below the poverty line. Step 2: This is a narrow definition – it only looks at ECONOMIC/MONETARY aspects. Step 3: It completely ignores non-monetary dimensions of poverty such as: illiteracy, ill health, lack of access to drinking water and sanitation, lack of civil and political freedoms, and social discrimination. Step 4: It also groups ALL the poor together without differentiating between the 'very poor' and the 'other poor,' making it hard to target those w
In 2011-12, Madhya Pradesh and Odisha each had a poverty ratio of 36%, while Kerala had a poverty ratio of only 7.1%. According to the chapter, Kerala's success in reducing poverty is primarily attributed to which strategy?
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Focus on human resource development, resulting in India's highest literacy rate of 94%
Step 1: Different states in India have used different strategies to reduce poverty. It is important to know which strategy is associated with which state. Step 2: Kerala focused on HUMAN RESOURCE DEVELOPMENT – investing in education, health, and social welfare. This gave Kerala India's highest literacy rate of 94%. Step 3: Punjab and Haryana achieved poverty reduction through AGRICULTURAL DEVELOPMENT (Green Revolution). Step 4: West Bengal reduced poverty through LAND REFORM MEASURES (land ceiling and redistribution of land to the landless). Step 5: Andhra Pradesh and Tamil Nadu focused on FOO
The concept of 'Vulnerability' as a new indicator of poverty refers to which of the following?
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The greater possibility of certain communities or individuals to remain poor in the coming years due to lack of assets, education, and opportunities.
Step 1: Recall that two new indicators of poverty have emerged – 'Social Exclusion' and 'Vulnerability.' Step 2: SOCIAL EXCLUSION (Option C) refers to the poor being excluded from living in good surroundings and enjoying social equality with better-off people. This is NOT vulnerability. Step 3: VULNERABILITY refers to the FUTURE risk – the greater possibility that certain groups (e.g., backward castes, widows, handicapped persons) will remain or become poor in the future. Step 4: Vulnerable groups are especially disadvantaged because they lack alternative sources of livelihood in terms of asse
MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) was launched on February 2, 2006. Which two earlier programmes were MERGED into MGNREGS at the time of its launch?
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Sampoorna Grameen Rozgar Yojana (SGRY) and National Food for Work Programme (NFFWP)
Step 1: This question requires precise knowledge of government programme mergers – a commonly asked factual yet hard question. Step 2: MGNREGS was notified under the Mahatma Gandhi National Rural Employment Guarantee Act in September 2005 and launched on February 2, 2006. Step 3: At the time of its launch, two ongoing wage employment programmes were merged into it: (i) Sampoorna Grameen Rozgar Yojana (SGRY) – started in 2001, and (ii) National Food for Work Programme (NFFWP) – started in November 2004 for 150 most backward districts. Step 4: PMEGP was created by merging REGP and PMRY – that is
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