ECONOMICS

CHAPTER 3 : POVERTY AS A CHALLENGE

Q. NO QUESTION MARKS
1 Who are the poorest of the poor? 1
(a) Women
(b) Old people
(c) Children
(d) All of the above

2 In which state has the high agricultural growth helped to reduce poverty? 1

(a) Jammu & Kashmir

(b) West Bengal
(c) Punjab
(d) Gujarat

3 In which state have the land reform measures helped to reduce poverty? 1

(a) Tamil Nadu

(b) Punjab
(c) West Bengal
(d) Kerala

4 What is the main cause of poverty in India? 1

(a) High income inequalities

(b) Less job opportunities
(c) High growth in population
(d) All of the above

5 Who is considered as poor? 1

(a) A rich landlord

(b) A businessman
(c) A landless labourer
(d) A teacher

6 Which of the following programmes was launched in the year 2000? 1

(a) National Rural Employment Guarantee Act

(b) Prime Minister Rojgar Yojana
(c) Swarna Jayanti Gram Swarozgar Yojna
(d) Pradhan Mantri Gramodaya Yojana

7 Who advocated that India would be truly independent only when the poorest 1
of its people become free of human suffering?
 (a) Mahatma Gandhi
(b) Indira Gandhi
(c) Jawahar Lal Nehru
(d) Subhash Chandra Bose

8 Who do not come under the category of urban poor? 1

(a) The casual workers

(b) The unemployed
(c) The shopkeepers
(d) Rickshaw pullers
9 The calorie requirement is higher in the rural areas because: 1
(a) they do not enjoy as much as people in the urban areas.
(b) food items are expensive.
(c) they are engaged in mental work.
(d) people are engaged in physical labour.
10 Which one of the social groups are vulnerable to poverty? 1

(a) Scheduled caste

(b) Urban casual labour
(c) Rural agricultural households
(d) All of the above

11 Sivaraman lives in a small village near Karur town in Tamil Nadu. Karur is 1
famous for its handloom and power loom fabrics. There are 100 families in
the village. Sivaraman an Arunthathiyar (cobbler) by caste now works as an
agricultural labourer for rupees 160 per day. But that’s only for five to six
months in a year. At other times, he does odd jobs in the town.

Why did Sivaraman need to do odd jobs in the town apart from agriculture?
(a) Physical weakness
(b) Lack of skills do work in agriculture
(c) Arunthathiayar caste is not allowed to work in agriculture for entire
year
(d) Agriculture only provides seasonal work

12 Two statements are given in the question below as Assertion (A) and 1
Reasoning (R). Read the statements and choose the appropriate option.

Assertion (A): Poverty means hunger and lack of shelter.

Reason (R): Poverty is living with a sense of hopelessness.

Options: a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true
13 Creating self-employment opportunities for educated unemployed youth in 1
rural areas and small town is the aim of
a) Swarnajayanti Gram Swarozgar Yojana
 b) Prime Minister RozgarYojana
c) Both (a) and (b)
None of these
14 Along with rural poverty, urban poverty is also high in 1
a) Odisha, Madhya Pradesh
b) Bihar
c) Uttar Pradesh
All of these
15 Social group which is the most vulnerable to poverty is/are 1
a) Scheduled Caste
b) Scheduled Tribe
c) Both (a) and (b)
People in remote area
16 Arranger the following in proper sequence as per their lunching year 1
a) Rural Employment Generation Programme
b) Prime Minister Rozgar Yojana
c) Swarnajayanti Gram Swarozgar Yojana
d) Pradhan Mantri Gramodaya Yojana

Codes
(a) (ii), (i), (iii), (iv)
(b) (i), (ii), (iii), (iv)
(c) (iv), (iii), (ii), (i)
(iii), (i), (iv), (ii)
17 Assertion (A): People in urban areas do more physical work. 1
Reason (R): Calorie requirement per person is more in rural areas than urban
areas.

Options: a) Both (A) and (R) are true, and (R) is the correct explanation of
(A).
b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
c) (A) is true but (R) is false.
d) (A) is false but (R) is true

18 Assertion (A): Social scientists look at poverty through variety of indicators. 1

Reason (R): Poverty has many facets.

Options: a) Both (A) and (R) are true, and (R) is the correct explanation of
(A).
b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
c) (A) is true but (R) is false.
d) (A) is false but (R) is true

19 For how many days NREGA provides an employment? 1

a) 120 days
b) 100 days
c) 90 days
60 days
20 Which industry suffered the most during the colonial period? 1
a) Agriculture
 b) Textiles
c) Raw Materials
Manufacturing
21 “Poverty is a curse upon humanity.” Explain by giving two examples. 2
22 How can poverty be reduced in future in India? Suggest any two points. 2
23 Mention any two causes of poverty in India. 2
24 Which methods are used to estimate the poverty line in India? 2
25 Which states of India has seen a significant decline in poverty? 2
26 State any two consequences of Poverty. 2
27 What are the major objectives of the Prime Minister Rozgar Yojana? 3
28 Give an account of the inter-state disparities in poverty in India. 3
29 Identify the various groups vulnerable to poverty. 3
Or
“The proportion of people below poverty line is also not same for all social
groups and economic categories in India.” Explain.
30 How is the regular growth of population is a major cause of poverty in India? 3
Explain.
31 How is poverty seen by social scientists? Explain. 3
32 “In poor families, all suffer, but some suffer more than others.” Explain the 3
statement.
33 In these circumstances, there is a clear need for targeted anti-poverty 4
programmes. Although there are so many schemes which are formulated to
affect poverty directly or indirectly some of them are worth mentioning.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA),
2005 aims to provide 100 days of wage employment to every household to
ensure livelihood security in rural areas. It also aimed at sustainable
development to address the cause of draught, deforestation and soil erosion.
One-third of the proposed jobs have been reserved for women. The scheme
provided employment to 220 crores person days of employment to 4.78 crore
households. The share of SC, ST, Women person days in the scheme are 23
per cent. 17 per cent and 53 per cent respectively. The average wage has
increased from 65 in 2006-07 to 132 in 2013-14.

(i) MGNREGA is an example of ............ running in India.

(a) rural programme
(b) social security programme
(c) educational programme
(d) targeted anti-poverty programme

(ii) MGNREGA is operational in which of the following areas?

(a) villages near the forest areas
(b) Trible areas
(c) Rural areas
(d) Rural and urban areas.

(iii) When was Mahatma Gandhi National Rural Employment Guarantee Act
formulated?
(a) 2001
(b) 1992
 (c) 2005
(d) 2015
(iv) Which among the following is not an aim of MGNREGA act?
(a) Provide 100 days of employment.
(b) Job security in rural urban areas.
(c) Reserve one-third jobs for SC.
(d) Both (b) and (c)
34 Prime minister Rozgar Yojana (PMRY) is another scheme which was started 4
in 1993. The aim of the programme is to create self-employment
opportunities for educated unemployed youth in rural areas and small
business and industries. Rural Employment Generation Programme (REGP)
was launched in 1995. The aim of the programme is to create self-
employment opportunities in rural areas and small towns. A target for
creating 25 lakh new jobs has been set for the programme under the Tenth
Five Year Plan. Swarnajayanti Gram Swarozgar Yojana (SGSY) was
launched in 1999. The programme aims at bringing the assisted poor families
above the poverty line by organising them into self-help groups through a
mix of bank credit and government subsidy.

(i) PMRY is a scheme aimed towards what?

(a) Food security
(b) Women safety
(c) Employment generation
(d) Poverty reduction

(ii) When was Rural Employment Generation Programme launched?

(a) 1993
(c) 2008
(b) 1995
(d) 1980

(iii) SGSY aims to provide bank credits and government subsidy to

(a) Self-help groups
(b) Rural unemployed youth (c) Urban educated youth
(d) Rural women

(iv) Self- employment opportunities means

(a) generate employment on your own.
(b) open cottage industry
(c) start business with very little capital
(d) All of the above
35 Since poverty has many facts, social scientists look at it through a variety of 4
indicators. Usually the indicators used relate to the levels of income and
consumption. But now poverty is looked through other social indicators like
illiteracy level, lack of general resistance due to malnutrition, lack of access
to healthcare, lack of job opportunities, lack of access to safe drinking water
sanitation etc. Analysis of poverty based on social exclusion and
vulnerability is now becoming very common.

(i) Social exclusion relates to ..........

 (a) People below poverty line.
(b) People above poverty line.
(c) people excluded from facilities, benefit and opportunities.
(d) Caste differences

(ii) A person with high income, but less consumption can be termed
vulnerable to poverty or not?
(a) Yes
(b) No
(c) Cannot be determined
(d) Can be socially excluded

(iii) What are the indicators of poverty?

(a) Low income
(b) Low consumption
(c) Illiteracy
(d) All of the above

(iv) Malnutrition, lack of healthcare are ………of poverty.

(a) indicator
(b) social exclusion
(c) vulnerability
(d) None of the above
36 Study the given bar graph carefully, and answer the following questions: 4

Source: Economic Survey 2001-02, Ministry of Finance, Government of

India.
(i) Identify the three states where the poverty ratio is the highest.
(ii) Identify the three states where poverty ratio is the lowest.
(iii) Why the states named given by you in part (i) have a high poverty ratio?
Mention one reason.
(iv) Why the states named given by you in part (ii) have a low poverty ratio?
Mention one reason.
37 4

Study the given figure carefully, and answer the following questions:
(i) Which area/country of the world had the largest concentration of poor in
1981?
(ii) Name the regions/countries where poverty has decreased (any two).
(iii) Whether the poverty in South Asia is increasing or decreasing. Give
reason.
38 Study the given bar graph carefully, and answer the following questions: 4
(i) Name any two social groups are highly vulnerable to poverty.
(ii) What is an average Indian poverty ratio?
(iii) Name any two economic groups which are highly vulnerable to poverty.

39 Explain any five major reasons for a widespread poverty in India. 5

Or
Discuss the major reasons for poverty in India.
40 Explain some measures which have been taken by the government to remove 5
poverty.
41 What are the major features of poverty? Explain. 5
42 Explain any five anti-poverty measures taken by the government of India. 5
43 Give a brief account of inter-state disparities of poverty in India. 5
44 How the poverty line is estimated in India? Describe it. 5
 ANSWER

Q. No ANSWER
1 (d) All of the above
2 (c) Punjab
3 (c) West Bengal
4 (d) All of the above
5 (c) A landless labourer
6 (d) Pradhan Mantri Gramodaya Yojana
7 (a) Mahatma Gandhi
8 (c) The shopkeepers
9 (d) people are engaged in physical labour.
10 (d) All of the above
11 Agriculture only provides seasonal works
12 Both (A) and (R) are true and (R) is not the correct explanation of (A).
13 Prime Minister Rozgar Yojana
14 All of these
15 Both (a) and (b)
16 (ii), (i), (iii), (iv)
17 (d) (A) Is false but (R) is true

18 Both (A) and (R) are true and (R) is the correct explanation of (A).
19 100 days
20 (b) textiles
21 Poverty is a curse because
i) most of the poor people live with a sense of helplessness.
ii) Poor people are debarred from the basic necessity if life, i.e. good health,
drinking water etc.

22 i) Better economic growth.

Increasing stress on universal free elementary education.
23 i) High growth rate of population.
Lack of job opportunities in the secondary sectors.
24 The daily income and consumption methods are used to estimate the poverty line in India.
25 There has been a significant decline in poverty in Kerala, Maharashtra, Andhra Pradesh,
Tamil Nadu, Gujarat and West Bengal.
26 ● Growth of slums and high level of indebtness are the two consequences of poverty.

(Any two relevant consequences)

27 ● The Yojana was launched in 1993.
● The aim of the programme is to create self-employment opportunities for educated
unemployed youth in rural areas and small towns.
Under this unemployed are helped in setting up small business and industries.
28 ● States with poverty ratio more than the national average: Orissa, Bihar, Assam,
Tripura and Uttar Pradesh are the most poverty ridden states of India. The poverty
ratio in these states is much higher than the national average. Orissa and Bihar are
 the poorest states with poverty ratio of 47 and 43 respectively. Most of these states
are facing rural as well as urban poverty.
● States with poverty ratio less than the national average: Recent studies show that in
20 states and union territories, the poverty ratio is less than the national average.
There has been a significant decline in poverty ratio in Kerala, , Andhra Pradesh,
Tamil Nadu, Gujarat and West Bengal.
● States with low poverty ratio: States like Punjab, Haryana, Goa, Himachal Pradesh
and Jammu Kashmir have very low percentage of population living below the
poverty line.

29 ● Social Groups: The social groups which are most vulnerable to poverty are
scheduled caste and scheduled tribe households. Although the average for people
below poverty line for all groups in India is 30, 48 out of 100 people belonging to
scheduled tribes in rural areas are not able to meet their basic needs.
● Economic groups: Similarly among the economic groups, the most vulnerable
groups are the rural agricultural labour households and the urban casual labour
households.
● Inequality with in family: Apart from these social groups, there is also inequality of
incomes within a family. In poor families all suffer, but some suffer more than
others. Women, elderly people and female infants are systematically denied equal
access to resources available to the family.

Therefore women, children (especially the girl child) and old people are poorest of the
poor.
30 i) Unemployment has increased.
ii) Led to increase in the rate of depletion of resources.
The people belonging to below poverty line has increased.
31 i) Social scientists use different types of indicators to understand their
consumption of goods.
ii) Social indicators like lack of education, healthcare, sanitation
Lack of job opportunities, literacy level and lack of access to safe drinking water.
32 Analysis of poverty on the basis of social exclusion and vulnerability shows that there are
people in our economy who suffer more than others because
i) Socially excluded people due to caste discrimination are excluded even from
facilities, benefits and opportunities that others enjoy.
ii) Vulnerability brings greater risks to the people at the time of natural disasters or
terrorism etc.
Vulnerable groups have lack of social and economic ability to handle risks
33 (i) Targeted anti-poverty programme
(ii) Rural areas
(iii) 2005
Reserve one-third jobs for SC
34 (i) Employment generation
(ii) 1995
(iii) Self-help groups
All of the above
35 (i) People excluded from facilities, benefit and opportunities
 (ii) Cannot be determined
(iii) All of the above
indicator
36 (i) Odisha, Bihar and Chattisgarh.
(ii) Himachal Pradesh, Punjab and Kerala.
(iii) Due to lack of job opportunities and high density of population.
(iv) Due to availability of work
37 (i) China.
(ii) China, East Asia and the Pacific.
(iii) Poverty in South Asia is decreasing. In 1981 more than 50 per cent of the population
was living below the poverty line, but in 2001, it was approximately 30 percent.
38 (i) Scheduled tribes arid Scheduled castes.
(ii) 30 per cent.
(iii) Rural agricultural labourer households and the urban casual labour households
39 ● British Rule: Britishers ruled India more than 100 years. Prior to the British rule,
traditional industries, for instance, textiles, flourished in India. During the British
rule, the government adopted policies to discourage such industries. This left
millions of weavers poor. Even after fifty years of independent India, we can find a
major section of the people engaged handicraft industries as, downtrodden.
● Lack of industrialisation: India is very backward from the industrial point of view.
Hardly 3 per cent of the total working population is engaged in the large- scale
industry.
● Over dependence on agriculture Even after more than 60 years of independence
more than 60 per cent of our total population still depends on agriculture for its
livelihood. Due to shortage of inputs, our agriculture is backward.
● Inflationary pressure: Upward trend in prices adversely affects the poor sections of
the society.
Unemployment: Due to lack of job opportunities, more than 90 lakhs of our total working
force is unemployed
40
To remove poverty government has adopted two approaches:

● Indirect approach: This covers achieving high economic growth rate,

promotion of small scale industry, promotion of agriculture. This approach is
also referred as trickle down effect. It was assumed that the development of
industry and agriculture would create employment opportunities and income,
which would lead to rapid economic development.
● Direct approach: Under direct approach government has launched various
poverty alleviation programmes and food schemes to target the poor directly.

The government has launched various poverty alleviation schemes to control poverty.

(i) National Rural Employment Guarantee Act (NREGA) 2005: It was passed in September
2005. The Act provides 100 days assured employment every year to every rural household
in 200 districts. Later, the scheme will be extended to 600 districts. One-third of the
proposed jobs would be reserved for women. The central government will also establish
National Employment Guarantee Funds. Similarly, state governments will establish State
Employment Guarantee Funds for the implementation of the scheme. Under the
 programme, if an applicant is not provided employment within fifteen days, he/she will be
entitled to a daily unemployment allowance.

(ii) National Food for Work Programme (NFWP): It was launched in 2004 in 150 most
backward districts of the country. The programme is open to all rural poor, who are in need
of wage employment, and desire to do manual unskilled work. It is implemented as a 100
per cent centrally sponsored scheme, and food grains are provided free of cost to the states.
Once the NREGA is in force, the NFWP will be subsumed within this programme.

(iii) The Prime Minister Rozgar Yojana (PMRY): It was started in 1993. The aim of the
programme is to create self-employment opportunities for the educated unemployed youth
in rural areas and small towns. They are helped in setting up small business and industries.

(iv) Rural Employment Generation Programme (REGP): It was launched in 1995. The aim
of the programme is to create self-employment opportunities in rural areas and small towns.
A target for creating 25 lakh new jobs has been set for the programme under the Tenth Five
Year Plan.

(v) Swarnajayanti Gram Swarozgar Yojana (SGSY): It was launched in 1999. The
programme aims at bringing the assisted poor families
above the poverty line by organising them into self-help groups through a j mix of bank
credit and government subsidy.

(vi) Pradhan Mantri Gramodaya Yojana (PMGY): It was launched in 2000, additional
central assistance is given to states for basic services such as primary health, primary
education, rural shelter, rural drinking water and rural electrification.
41 ● It also is a situation in which parents are not able to send their children to school or
a situation where sick people cannot afford treatment.
● Poverty also means lack of clean water and sanitation facilities.
● It also means lack of regular job at a minimum decent level. Above all it means
living with a sense of helplessness.
● Poor people are in a situation in which they are ill-treated at almost every place, in
farms, factories, government offices, hospitals, railway stations etc.
Poverty when looked through other social indicators like illiteracy level, lack of general
resistance due to malnutrition, lack of access to healthcare, lack of job opportunities, lack
of access to safe drinking water, sanitation etc.
42 Important anti-poverty programmes which are in operation in rural and urban areas are:
i) Prime Minister Rojgar Yojana (PMRY): PMRY was launched on 2ND October,
1993. The aim of this programme is to create self-employment opportunities for
educated youth in rural areas and small towns. They are helped in setting up
small business and industries.
ii) Swarna Jayanti Gram Swarojgar Yojana (SGSY): It was launched on 1st April,
1999. It aims at promoting enterprises at the village level. It helps the rural
people to organise themselves into self-help groups. The objectives of SGSY is
to bring the existing poor families above the poverty line by providing them
income generating assets through bank credit and govt. subsidy.
 iii) Pradhan Mantri Gramodaya Yojana (PMGY): It was introduced in 2000. Its
objective is to focus on village level development in five critical areas, this is,
primary heath, primary education, rural shelter, rural drinking and rural roads.
As a result of this, the quality of life of rural people to improve.
iv) National Rural Employment Guarantee Act (NREGA): It was passed in
September 2005. The Act provides for 100 days assured employment to every
rural household in 200 districts. Later, the scheme will be extended to 600
districts.
v) National Food for Work Programme (NFWP): This was launched 2004 in 150
most backward district of the country. The programme is open to all rural poor
who are in need of wage employment and desire to do manual unskilled work.
Once the NREGA is in force, the NWFP will be subsumed within this
programme.

43 i) Proportion of poor people is not the same in every state.

ii) In 20 states and union territories, the poverty ratio is less than national average.
iii) In the states of Odisha, Bihar, Assam, Tripura and Uttar Pradesh, poverty is a
serious problem. Along with rural poverty, urban poverty is also high in these
states.
iv) While in the states like Kerala, Jammu and Kashmir Tamil Nadu, Andhra
Pradesh, there is a significant decline in poverty
v) States like Punjab and Haryana have succeeded in reducing poverty with the
help of high agricultural growth rates.
In West Bengal, land reform measures have helped in reducing poverty. (Any five)
44 While determining the poverty line in India, a minimum level of food requirement,
clothing, footwear, fuel and light, educational and medical requirement etc, are determined
for subsistence.
i) The calorie requirement depending upon the age, sex, area and type of work is
the way of estimating poverty. Average calorie requirement in India is 2400 per
person per day in rural areas and 2100 per persons per day in urban areas.
ii) Monetary expenditure per capita needed is also a way of estimating poverty. In
the year 2000, the poverty for a person was fixed Rs 328 per month for the rural
areas and Rs 454 for the urban areas.
A uniform standard for poverty line is also used, which is given by international
organisation like the World Bank. This is equivalent to $1 per person per day.