Important MCQs of Poverty chapter of Economics Class 12

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Looking for Important (Multiple Choice Questions) MCQs of Poverty Chapter of Macro Economics of Class 12 of CBSE Board, ISC, and other State Board.

This chapter is concerned with the Current Challenges facing the Indian Economy unit of Economics Class 12.

It is the 4th chapter of the Indian Economic Development Book of Class 12.

Multiple Choice Questions of Poverty Chapter of Macroeconomic Class 12

Let’s solve the MCQs.

1. SJSRY stands for:

a) Swarna Jaynati Shahri Rozgar Yojna
b) Shahari Jeewan Sudhar Rashtriya Yojana
c) Sampoorna Jeewan Shahari Rozgar Yojna
d) None of these

Ans – a)

2. ______ poor are the ones who regularly move in and out of poverty.

a) Chronic
b) Churning
c) Occasionally
d) None of these

Ans – b)

3. The earlier ‘Food for work Programme’ has now been converted into:

a) Intensive Area Development Program
b) Integrated Rural Development Program
c) Mahatma Gandhi National Rural Employment Program
d) Minimum Needs Program

Ans – c)

4. Which of the following is a characteristic of poor people?

a) Poor health
b) Debt Trap
c) Smaller Families
d) Gender Inequality

Ans – a), b), d)

5. MPCE stands for __

a) Monthly Per Capital Expenditure
b) Minimum Per Capita Expenditure
c) Maximum Per Capital Expenditure
d) None of these

Ans – a)

6. Self-employment programmes include:

a) Prime Minister’s Rozgar Yojana
b) Swarna Jayanti Shahri Rozgar Yojana
c) National Food for Work Programme
d) All of the above

Ans – a), b)

7. Who introduced the concept of ‘Jail Cost of Living’?

a) Mahatma Gandhi
b) Dodabhai Naroji
c) Jawahar Lal Nehru
d) None of these

Ans – b)

8. Which one of the following are categorised as “Always Poor”?

a) Chronic Poor
b) Occasionally Poor
c) Both a) and b)
d) Neither a) nor b)

Ans – a)

9. ____ refers to poverty of people, in comparison to other people, regions or nations.

a) Absolute Poverty
b) Relative Poverty
c) Both a) and b)
d) Neither a) nor b)

Ans – b)

10. Which organization collects data on poverty in India?

a) NSSO
b) SJSRY
c) MGNERGA
d) None of these

Ans – a)

11. Transient poor includes:

a) Occasionally poor
b) Churning Poor
c) Never Poor
d) Usually Poor

Ans – a), b)

12. In which year, “National Food for Work Programme” was launched?

a) 2008
b) 1999
c) 2004
d) 2010

Ans – c)

13. When was Natinoal Social Assistance Programme Initiated?

a) 15th August 1996
b) 15th August 1998
c) 15th August 1997
d) 15th August 1995

Ans – d)

14. The Programme initiated by the Government to improve food and nutritional level of poor was:

a) Public Distribution System
b) Integrated Child Development Scheme
c) Midday Meal Scheme
d) All of these

Ans – d)

15. Reason for chronic indebtedness among the poors.

a) Poor work mainly as landless agricultural laborers
b) Poor borrow money from lenders who charge high rates of interest
c) The poor are highly vulnerable. They are not able to negotiate their legal wages from employers and are exploited
d) Poors and landless. Even if some of them possess land, it is only dry or wasteland.

Ans – b)

Explanation:- Poor are unable to maintain debt payment, their accounts are suspended, and their total debt continues to grow because of interest that leads them into chronic indebtedness.

16. How economists identity the poor?

a) On the basis of their wealth
b) On the basis of their annual income
c) on the basis of their occupation and ownership of assets
d) On the basis of their savings

Ans – c)

Explanation:- Many poor are landless. Even if some of them possess the land, it is only dry or wasteland. So, economists directly relate asset and ownership with poor, i.e. less asset and ownership means more poverty.

17. Why poor have very limited economic opportunities?

a) As they live in a rural area
b) Scarcity of funds
c) Lack of basic literacy and skills
d) All of these

Ans – c)

Explanation:- Literacy is the basic key to gain employment and attaining economic development. The poor lack basic literacy and skills and hence have very limited economic opportunities.

18. In pre independent India. Who was the first to discuss the concept of a poverty line?

a) Dadabhai Naroji
b) V.K.R.V Rao
c) R.C Desai
d) Findly Shirras

Ans – a)

Explanation:- One of the earliest estimations of poverty was done by Dadahai Naoroji in his book. Poverty and the Un-British Rule in India. He formulated a poverty line ranging from ₹16 to ₹35 per capita per year, based on 1867-68 prices.

19. Amartya Se, noted Noble Laureate, has developed an index known as

a) Poverty Gap Index
b) Sen Index
c) SQuared Poverty Gap
d) Income disparity Gap Index

Ans – b)

Explanation:- Amartya Sen, noted Noble Laureate, has developed an index known as sen index. it is defined as the average poverty gap in the population as a proportion of the poverty line.

20. The official data on poverty is made available to the public by the

a) NSSO
b) Planning commission
c) Government of India
d) None of the above

Ans – b)

21. Why per head availability of land for cultivation has steadily declined?

a) Rapid growth of population and without alternative sources of employment
b) Lands and water bodies are getting polluted due to excessive and improper use of agro
chemicals
c) Drought has a massive impact on agriculture, land and on the ecosystem also
d) All of the above

Ans – a)

22. The government’s approach to poverty reduction was of _________dimensional.

a) one
b) two
c) three
d) four

Ans – c)

Explanation:- The government’s approach to poverty reduction was of three dimensions. These dimensions are 1) Growth-oriented approach, 2) Poverty alleviation programs, and 3) Providing minimum basic amenities.

23. Growth-oriented approach was not much successful because

I) of population growth
II) of the green revolution exacerbated
III) there was unwillingness and inability to redistribute land
IV) of unequal distribution of land and other assets

a) Only – I
b) I and II
c) I, II, III
d) I, II, III, IV

Ans – c)

24. Which is not belongs to poverty allevaiation programmes?

a) Rural Employment Generation Programme (REGP)
b) Prime Minister’s Rozgar Yojana
c) Swarna Jayanti Shahari Rozgar Yojana
d) National Social Assistance Programme

Ans – d)

25. In August 2005, the Parliament passed a new act to provide guaranteed wage employment to every rural household whose adult volunteer is to do unskilled manual work for a minimum of 100 days in a year. This act is known as

a) Mahatama Gandhi National Rural Employment Guarantee Act.
b) Minimum Wages Act
c) Minimum Wages Guarantee Act
d) Rural Employment Guarantee Act

Ans – a)

26. Which schemes was launched in 2001 to improve the living condition of a slum?

a) Pradhan Mantri Awas Yojana
b) Valmiki Ambedkar Awas Yojana
c) Gramin Awas Yojana
d) Rajiv Awas Yojana

Ans – b)

27. Transient poor can be further categorized into

a) absolute and relative
b) churning and very
c) absolute and occasionally
d) churning and occasionally

Ans – d)

28. British rule in India is to be considered as one of the major reasons for poverty. Out of the following, find the correct reason for poverty due to British rule.

I – Industrial sector was destroyed
II – People forced to depend on agriculture
III – Poor depends on indebtedness
Iv – Farmers are compelled to sell their produce at a low price
V – charged high taxes

a) I,II,III and IV
b) I, II, IV and V
c) I, II, and V
d) III, IV and V

Ans – b)

29. United Nations Development Programme has identified two categories of poverty

I) Income POverty
II) Relative Poverty
III) Absolute Poverty
IV) Human Poverty
V) Rural Poverty
VI) Urban Poverty

a) I and III
b) I and IV
c) II and III
d) V and VI

Ans – b)

30. With which disparity of income and its distribution are associated?

a) Absolute Poverty
b) Relative Poverty
c) Chronic Poverty
d) All of the above

Ans – b)

31. Relative Poverty is prevalent in:

a) Capitalist Countries
b) Socialist Countries
c) Communist Countries
d) Developed Countries

Ans – a)

32. Absolute Poverty is prevalent in:

a) Communist Countries
b) Developing Economics
c) Socialist Economics
d) Developed Countries

Ans – b)

33. Estimation of Poverty in rural economies is at per day consumption of calories:

a) Less than 2200
b) Less than 2100
c) Less than 2400
d) Less than 2000

Ans – c)

34. Estimation of poverty in urban areas is at the consumption of per dy calories is:

a) Less than 2000
b) Less than 2100
c) Less than 2400
d) Less than 2200

Ans – b)

35. What is the main reason for poverty in India in urban areas?

a) Lack of Professional Education
b) Unequal Distribution
c) Lack of Family Planning Facilities
d) Money Inflation

Ans – c)

36. Which of the following statement is not true regarding the causes of Poverty in India?

a) Excessive dependence on agriculture
b) Rapid increase in population
c) Wide prevalence of illiteracy
d) The reduction in income disparity

Ans – d)

37. Which of the following statement is true regarding the failure of poverty alleviation programs in India:

a) The poor still lack the basic amenity
b) The improper implementation of various schemes
c) Succes of the land reform policies
d) The ill motives of bureaucrats.

Ans – b), d)

38. Which of the following is prominent in the Indian Economy?

a) Relative Poverty
b) Absolute poverty
c) Both a) and b)
d) None of these

Ans – c)

39. A cut off point (in terms of per capita expenditure) dividing people as poor and nonpoor indicates the number of those who are:

a) relatively poor
b) absolutely poor
c) below the poverty line
d) Both b) and c)

Ans – c)

40. In India, absolute poverty is measured with reference to:

a) Poverty line
b) GDP
c) per capita income
d) unemployment

Ans – a)

41. Which of the following is a reason for poverty in India?

a) Low rate of growth
b) Inflation
c) Inadequacy of capital
d) All of these

Ans – d)

42. Poverty continues to persist in India, because of:

a) rising prices
b) rising population
c) lack of opportunities for employment
d) all of these

Ans – d)

43. The people who never move above the poverty line are called:

a) chronic poor
b) non-poor
c) both a) and b)
d) None of these

Ans – a)

44. Rural poor includes:

a) landless laborers only
b) marginal farmers only
c) tenants at will only
d) all of these

Ans – d)

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