1. In which year UNO adopted a definition of absolute poverty?
(a) 1994
(b) 1995
(c) 1996
(d) 1997
[U.P.P.C.S. (Pre) 2017]
Ans. (b) 1995
- In 1995, the United Nations (UNO) defined absolute poverty as a condition where people are deprived of basic needs such as food, clean water, sanitation, health care, shelter, education, and information.
- It doesn’t just depend on income but also on access to services.
- In 2017, 696 million people worldwide (9.3% of the population) were living on less than 1.90 US dollars a day (according to 2011 PPP and the International Poverty Line).
- It is predicted that the COVID-19 pandemic will cause global extreme poverty to increase for the first time in more than 20 years.
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2. Which of the following methods has/have been used to estimate poverty in India?
1. Head Count Ratio
2. Calorie Intake
3. Household Consumption Expenditure
4. Per Capita Income
Select the correct answer from the codes given below.
Codes :
(a) 2 and 3
(b) 1, 2 and 3
(c) 3 only
(d) 1, 2, 3 and 4
[U.P. P.C.S. (Pre) 2020]
Ans. (b) 1, 2 and 3
- Right now, India uses Household Consumption Expenditure to measure poverty.
- This idea was suggested by the Tendulkar Committee, a group of experts that was formed in 2005 and presented their report in 2009.
- Households spend money on food, health, and education following the advice of the Tendulkar Committee.
- The Head Count Ratio is the amount of people who live below the poverty line.
- In India, the HCR is calculated based on the urban and rural poverty lines for each state.
- The number of people living in poverty in each state is combined to give the national HCR and poverty lines for urban and rural areas.
- Option (b) is the correct answer.
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3. The basis of poverty estimates in India is:
(a) Per capita income
(b) Per capita expenditure
(c) Household consumption expenditure
(d) None of the above
[U.P. R.O./A.R.O. (Pre) 2013]
Ans. (c) Household consumption expenditure
- In India, it is difficult to gauge how much money people make, including self-employed people, daily wage laborers, and those whose income fluctuates frequently.
- This, combined with the difficulty of gathering data from India’s largely rural and informal economy, has meant that poverty line estimations must be based on consumption expenditure rather than income levels.
- Households can use either credit or savings to spread out their spending, which can give a better idea of their overall standard of living.
- Therefore, most committees that studied poverty suggested that measuring a household’s spending or expenses would be the best way to calculate poverty in India.
- The Planning Commission (now NITI Aayog) estimates poverty levels based on surveys conducted by the NSSO (now NSO) that look at how much households spend.
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4. Unemployment and poverty estimates in India are based on :
(a) NSSO household consumption expenditure survey
(b) CSO household consumption expenditure survey
(c) Planning Commission’s household consumption expenditure survey
(d) NSSO family income survey
[R.A.S./R.T.S. (Pre) 2016]
Ans. (a) NSSO household consumption expenditure survey
- This is used to figure out how much people are spending, as well as how many people are in different spending categories.
- This is used to figure out how many people are in poverty in different parts of the country and to track economic changes since 2011-12.
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5. The basis of determining the poverty line in India is :
(a) Income data
(b) Saving data
(c) Consumption data
(d) Investment data
[U.P. U.D.A./L.D.A. (Spl.) (Mains) 2010]
Ans. (c) Consumption data
- The poverty line is determined by how much people spend on goods and services in one month.
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6. Poverty level in India is established on the basis of :
(a) Per capita income in different States
(b) Household average income
(c) Household consumption expenditure
(d) Slum population in the country
[U.P. Lower Sub. (Pre) 2013, U.P.R.O./A.R.O. (Mains) 2013, U.P. P.C.S. (Pre) 2009]
Ans. (c) Household consumption expenditure
- If a family’s income or spending is lower than a certain amount, then they are considered to be living in poverty in India.
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7. The methodology followed for poverty estimation by using 61st NSSO data in 2004-05 is :
(a) Uniform Recall Method (URM) only
(b) Mixed Recall Method (MRM) only
(c) Both URM and MRM
(d) None of the above
[J.P.S.C. (Pre) 2016]
Ans. (c) Both URM and MRM
- Data from the 61st National Sample Survey shows that two different types of household consumption in 2004-05 were collected.
- The first one is based on the consumption data collected over a 30-day period for all items.
- Data from consumer spending was collected over a period of 365 days for five items that are not usually bought often (clothing, footwear, durable goods, education and medical expenses) and 30 days for all other items.
- The commission used an expert group to figure out poverty in 2004-05 using two different ways of distributing consumption.
- One of these methods is called the Uniform Recall Period (URP) and the other is called the Mixed Recall Period (MRP).
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8. Which method is not used to decide the poverty line?
(a) Average per capita income
(b) Calories in food
(c) H.C.R.
(d) Literacy
[Chhattisgarh P.C.S. (Pre) 2005]
Ans. (d) Literacy
- Literacy is not a way to measure poverty.
- Other choices mentioned in the question are used to find out the poverty line.
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9. Which of the following Committees recommended a poverty line based on nutritional requirements exclusively?
(a) Alagh Committee
(b) Lakdawala Committee
(c) Tendulkar Committee
(d) Rangarajan Committee
[U.P. P.C.S. (Pre) 2020]
Ans. (a) Alagh Committee
- In 1977, a group led by Dr. Y.K. Alagh was created by the Planning Commission to figure out how many people were living in poverty.
- In 1979, they released a report which set a poverty line for different areas based on how much food and money people needed.
- The poverty line was set at 2400 calories/49.09 rupees per capita per month for rural areas and 2100 calories/56.64 rupees per capita per month for urban areas, using prices from 1973-74.
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10. According to the Planning Commission, how many average daily calories per person define the poverty line in urban areas?
(a) 2100
(b) 2400
(c) 2700
(d) 3000
[U.P.U.D.A./L.D.A. (Pre) 2001, M.P.P.C.S. (Mains) 2006]
Ans. (a) 2100
- The Planning Commission created a task force led by Dr. Y.K. Alagh which, in its report from 1979, set a poverty line based on the average daily calorie requirement.
- In rural areas, that requirement was 2400 calories per person per day, and in urban areas, it was 2100 calories per person per day.
- These requirements were calculated based on the Nutrition Expert Group’s research, which was referenced from the 1971 population census.
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11. Which one of the following per capita calorie intake has been recommended to determine the poverty line in rural areas in India?
(a) 2200
(b) 2400
(c) 2500
(d) 2600
[U.P. Lower Sub. (Pre) 2008]
Ans. (b) 2400
- In rural areas, that requirement was 2400 calories per person per day, and in urban areas, it was 2100 calories per person per day.
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12. Poverty in India has been defined in terms of :
(a) Standard of living of the people
(b) Income of the family
(c) Calorie intake
(d) Number of members in a family
[U.P.P.C.S. (Mains) 2008, U.P. Lower (Spl.) (Pre) 2008]
Ans. (c) Calorie intake
- In India, poverty is based on how much a household spends, not how much they earn.
- A survey done by the National Sample Survey Organisation (NSSO) looks at how much people spend.
- A family is considered poor if their spending is less than a certain amount.
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13. Persons below the poverty line in India are classified as such based on whether :
(a) they are entitled to a minimum prescribed food basket
(b) they get work for a prescribed minimum number of days in a year
(c) they belong to agricultural laborers’ households and the scheduled caste/tribe social group
(d) their daily wages fall below the prescribed minimum wages
[I.A.S. (Pre) 1999]
Ans. (a) they are entitled to a minimum prescribed food basket
- In India, people who are below the poverty line are determined based on whether they are eligible to receive a certain amount of food, can get a job for a specific amount of days per year, or are from an agricultural laborer family or a scheduled caste/tribe group.
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14. The Government of India constituted a committee to set new standards for the estimation of the population living below the poverty line. Who was the chairman of this committee?
(a) Nirmala Deshpande
(b) V. Siddharth
(c) Suresh Tendulkar
(d) Professor Jankiraman
[U.P. U.D.A./L.D.A. (Pre) 2013]
Ans. (c) Suresh Tendulkar
- In 2005, Suresh Tendulkar was in charge when the Indian Government created a committee to create new rules for estimating how many people were living in poverty. The Tendulkar Committee finished their report in 2009.
- The Committee proposed some changes to how poverty is calculated. To start, they suggested getting rid of the way poverty has been measured since 1979, which was based on calorie standards, and replacing it with nutritional goals.
- Second, instead of two different sets of items for the poverty line in rural and urban areas, it suggested one uniform set of items for the whole of India. Third, it suggested using an estimate based on a Mixed Reference Period, instead of the Uniform Reference Period used before for estimating poverty.
- The Tendulkar Committee made sure the poverty lines were accurate by examining how much people at the poverty line spent on food, education and health.
- Instead of spending the same amount each month, the amount spent each day was worked out for each person. This showed that people in urban areas spent Rs. 32 a day, and people in rural areas spent Rs. 26 a day. The poverty line for 2011-12 was calculated at Rs. 816 a month for rural areas and Rs. 1000 a month for urban areas.
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15. In a given year in India, official poverty lines are higher in some States than in others because
(a) Poverty rates vary from State to State
(b) Price levels vary from State to State
(c) Gross State Product varies from State to State
(d) Quality of public distribution varies from State to State
[I.A.S. (Pre) 2019]
Ans. (b) Price levels vary from State to State
- The Suresh Tendulkar Committee calculated different poverty lines for rural and urban areas in each state based on the same set of items in the poverty line.
- These poverty lines varied between states because of the different prices of the items in the basket.
- This means that in any given year, poverty lines will be higher in some states compared to others because of the different prices in each state.
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16. According to the Planning Commission of India, which of the following is correct for the poverty line?
I. Rs. 42 per capita per day in Urban area
II. Rs. 26 per capita per day in Rural area
III. Rs. 32 per capita per day in Urban area
IV. Rs. 32 per capita per day in Rural area
Choose the correct option from the following :
(a) I and II
(b) I and III
(c) II and III
(d) III and IV
[56th to 59th B. P. S.C.(Pre) 2015]
Ans. (c) II and III
- The Planning Commission released updated poverty statistics for 2011-2012 on July 22, 2013, based on data from the NSSO Household Consumer Expenditure Survey, following the Tendulkar Committee’s recommendations.
- The poverty line for rural areas was set at Rs. 816 per person per month (Rs. 26 per day), and for urban areas, Rs. 1000 per person per month (Rs. 32 per day).
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17. Who has determined the poverty line, Rs. 32/– per day, per person consumption expenditure for rural areas, and Rs. 47/– per day, per person consumption for urban areas in India?
(a) Prof. S.D. Tendulkar Committee
(b) Prof. C. Rangarajan Committee
(c) Dr. Montek Singh Ahluwalia
(d) Mr. Yashwant Sinha Committee
(e) Dr. Bimal Jalan
[Chhattisgarh P.C.S. (Pre) 2016]
Ans. (b) Prof. C. Rangarajan Committee
- In 2012, another committee to measure poverty in India was formed under the leadership of Prof. C. Rangarajan due to the criticism of the Tendulkar Committee and the changing needs of the people.
- The Rangarajan committee submitted their report in June 2014 which suggested different sets of items that should be consumed in rural and urban areas for the recommended calorie, protein, and fat intake as well as items like clothing, education, health, housing, and transport.
- The committee increased the amount of money spent each day per person in urban areas to 47 rupees and for rural areas to 32 rupees, which was more than the 32 and 26 rupees suggested by the Tendulkar Committee in 2011-12.
- They also suggested that 972 rupees per month should be spent in rural areas and 1407 rupees per month in urban areas for a poverty line across India. However, the government did not make a decision about the Rangarajan Committee’s report.
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18. Which of the following is measured by the Lorenz curve?
(a) Illiteracy
(b) Unemployment
(c) Population growth rate
(d) Inequality of income
[U.P.P.C.S. (Pre) 2018]
Ans. (d) Inequality of income
- The Lorenz curve is a diagram that Dr. Max O. Lorenz created in 1905 to show how income is distributed among different people.
- It shows how much of the total income is earned by each percentile of the population.
- The straight line at a 45° angle represents an equal distribution of income, while the curved line shows the actual distribution.
- The degree to which the line sags below the perfect equality line shows how unequal the distribution of income is.
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19. Measures of distribution of income :
(a) Philip Curve
(b) Lorenz Curve
(c) Marshall Curve
(d) Laffer Curve
[Chhattisgarh P.C.S. (Pre) 2018]
Ans. (b) Lorenz Curve
- Dr. Max O. Lorenz invented the Lorenz curve in 1905 to show how income or wealth is shared out.
- It shows how much inequality there is in who has money.
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20. The idea of ‘Cultural Poverty’ was given by :
(a) Oscar Lewis
(b) Gunnar Myrdal
(c) Aashish Bose
(d) Amartya Sen
[U.P. P.C.S. (Pre) 2020]
Ans. (a) Oscar Lewis
- Oscar Lewis, an American anthropologist, proposed the concept of ‘Cultural Poverty’.
- This is a way of life that some people living in poverty in a capitalist society develop as a way to cope with their situation.
- This culture is then passed down from generation to generation.
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21. The concept of ‘Vicious Circle of Poverty’ is related to :
(a) Karl Marx
(b) Nurkse
(c) Adam Smith
(d) None of the above
[U.P.P.C.S. (Pre) 2014]
Ans. (b) Nurkse
- In his book “Problems of Capital Formation in Underdeveloped Countries” published in 1953, economist Professor Ragnar Nurkse wrote about the idea of the “Vicious Circle of Poverty”.
- He suggests that countries with low development levels are poor because they are stuck in a cycle of poverty. This cycle, affecting both the demand and supply sides, stops the country from being able to invest. The supply side of this cycle shows that in underdeveloped countries, productivity is too low to allow for capital formation.
- Low income is caused by a lack of capital, which is in turn caused by a lack of capacity to save. Low income leads to low consumption, which leads to low investment, which leads to low capital formation and low productivity, creating a cycle of low income.
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22. The cyclic poor are those :
(a) Who always remains poor
(b) Who continuously shuffle between being poor and non-poor
(c) Who mostly remain non-poor but sometimes they become poor
(d) All of the above
[J.P.S.C. (Pre) 2016]
Ans. (c) Who mostly remain non-poor but sometimes they become poor
- Cyclical poverty is poverty that affects a lot of people, but it doesn’t last forever.
- This could be caused by people losing their jobs or not having enough food due to natural disasters, or due to changes in the economy that cause a lot of people to lose their jobs.
- This means that some people are not always poor, but sometimes they can become poor.
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23. Which of the following fixes the poverty line in India?
(a) Central Council of Ministers
(b) Lok Sabha
(c) Rajya Sabha
(d) Planning Commission (Now Niti Aayog)
[U.P.P.C.S. (Pre) 2018]
Ans. (d) Planning Commission (Now Niti Aayog)
- The Planning Commission used to be the main organization that decided the poverty line in India, both nationally and at the state level.
- Starting in January 2015, the Planning Commission was replaced by the NITI Aayog, which now takes on the responsibility of deciding the poverty line in India.
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24. Which among the following in India is the nodal agency for the estimation of poverty at the national and state level?
(a) Finance Commission
(b) Rural Ministry
(c) Home Ministry
(d) Planning Commission
[U.P.P.C.S. (Pre) 2014]
Ans. (d) Planning Commission
- The Planning Commission was the main organization in charge of deciding the poverty line in India both nationally and at the state level.
- In January 2015, NITI Aayog replaced the Planning Commission, and it is now the agency responsible for setting the poverty line in India.
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25. Which of the following committees is related to the estimation of poverty in India?
(a) Vijay Kelkar Committee
(b) Suresh Tendulkar Committee
(c) S.P. Gupta Committee
(d) Lakdawala Committee
[R.A.S./R.T.S.(Pre) 2013]
Ans. (*)
- The Suresh Tendulkar and Lakadawala Committees are both connected to working out poverty levels in India, so answers (b) and (d) are both correct.
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26. Which among the following committee’s recommendations are used for estimating the poverty line in India?
(a) Dutt Committee
(b) Lakdawala Committee
(c) Chelliah Committee
(d) Chakravarty Committee
[U.P. Lower Sub. (Pre) 2013]
Ans. (b) Lakdawala Committee
- In the past, the Planning Commission used to calculate poverty in India at the National and State level.
- Over the years, different committees have been set up to decide what the poverty level is and how to measure it.
- Notable committees include the Alagh Committee (1979), Lakadawala Committee (1993), Tendulkar Committee (2009), and C. Rangarajan Committee (2014), to name a few.
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27. Which of the following committees was set up in India for the identification of BPL families in Urban Areas?
(a) Tendulkar Committee
(b) Saxena Committee
(c) Lakdawala Committee
(d) Hashim Committee
[U.P.P.C.S. (Pre) 2018]
Ans. (d) Hashim Committee
- In 2010, the Planning Commission set up an Expert Group, led by Prof. S.R. Hashim, to figure out who was living below the poverty line in cities.
- They used three different criteria – where they lived, their social situations, and their job – to decide who was poor.
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28. Consider the following statements :
Assertion (A): There is a need to consider the people below the poverty line as an identified group. Reason (R): It facilitates the targeting of program agencies.
With reference to the above, which one of the following is the correct answer :
Code :
(a) A and R both are true and R is the correct explanation of A.
(b) A and R both 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.
[U.P. Lower Sub. (Pre) 1998]
Ans. (a) A and R both are true and R is the correct explanation of A.
- Assertion and Reason both are true and R is the correct explanation of A.
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29. Consider the following statements :
Assertion (A): In India both rich and poor are malnourished.
Reason (R): The rich eat the wrong diet and the poor eat the poor diet.
Select the correct answer from the code given below :
Code :
(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
[U.P. U.D.A./L.D.A. (Pre) 2010]
Ans. (a) Both (A) and (R) are true, and (R) is the correct explanation of (A)
- In India, both wealthy and poor people are not getting proper nutrition.
- Poor people usually don’t have many options to get food, and what they do have is not always of good quality or in enough quantity.
- The rich, on the other hand, often eat too much or eat food that is not healthy.
- Therefore, both the statement and the explanation about malnutrition in India are true.
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30. Tendulkar Committee has estimated that in India the percentage of the population below the poverty line is :
(a) 27.2
(b) 37.2
(c) 22.7
(d) 32.7
[U.P. P.C.S. (Pre) 2012, U.P. U.D.A./L.D.A. (Pre) 2013]
Ans. (b) 37.2
- In 2004-05, the Tendulkar Committee estimated that 37.2% of people in India were living in poverty.
- The Planning Commission revealed data in 2013 which showed that according to the Tendulkar method, the poverty rate in 2011-12 was 21.9%.
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31. The estimated percentage of persons below the poverty line in 2011-12 by Tendulkar method using a mixed reference period in India is :
(a) 27.5
(b) 37.2
(c) 21.9
(d) 32.4
[R.A.S./R.T.S. (Pre) 2013]
Ans. (c) 21.9
- In 2004-05, the Tendulkar Committee estimated that 37.2 percent of people in India were living in poverty.
- In July 2013, the Planning Commission reported that the poverty rate in 2011-12 based on the Tendulkar methodology was 21.9 percent.
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32. According to the data released by the Planning Commission in April 2011, poverty in India in 2009-10 has declined to :
(a) 30%
(b) 31%
(c) 32%
(d) 33%
[U.P.P.C.S. (Mains) 2011]
Ans. (a) 30%
- In March 2012, the Planning Commission reported that poverty had decreased from 37.2% in 2004-05 to 29.8% in 2009-10.
- This was based on the Tendulkar Committee’s methodology, which takes into consideration spending on health and education in addition to calorie intake.
- In July 2013, the Planning Commission released updated figures, showing that poverty was down to 21.9% in 2011-12.
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33. Poverty in India 5 years ago was stated to be 37.2 percent. According to data released by the Planning Commission in April 2011 poverty in India in 2009-10 has declined to
(a) 30%
(b) 31%
(c) 32%
(d) 34%
[U.P.P.C.S. (Mains) 2011]
Ans. (a) 30%
- On March 19, 2012, the Planning Commission released data stating that the poverty rate in India had decreased by 7.3 percent from 2004-2005 to 2009-2010.
- This decrease was due to the Tendulkar Committee’s recommended methodology, which takes into account spending on health and education in addition to calorie intake.
- In 2013, the Planning Commission released new data, showing that the poverty rate in 2011-2012 was 21.9 percent.
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34. What percentage of people in India live below the poverty line?
(a) 29.5 percent
(b) 23.5 percent
(c) 40.5 percent
(d) 27.5 percent
[M.P.P.C.S. (Pre) 2010]
Ans. (d) 27.5 percent
- According to Planning Commission estimates from 2004-05, 27.5 percent of the people in India were living below the poverty line.
- For more recent poverty data from 2009-10 and 2011-12 (released in March 2012 and July 2013 with the Tendulkar Methodology), please refer to the explanation of the question above.
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35. According to official estimates the percentage of the Indian population living below the poverty line is about :
(a) 18
(b) 26
(c) 29
(d) 31
[R.A.S./R.T.S.(Pre) 2003, Uttarakhand U.D.A./L.D.A. (Pre) 2003]
Ans. (b)26
- According to the Planning Commission’s statistics from 1999-2000, 26.1% of the Indian population was living in poverty.
- For more information about poverty in India, please see the explanation of the question.
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36. The Eleventh Five-Year Plan aims to reduce the poverty ratio by what percentage by the year 2012?
(a) 2.0%
(b) 2.5%
(c) 10.0%
(d) 15.0%
[U.P. U.D.A./L.D.A. (Pre) 2013]
Ans. (c) 10.0%
- During the Eleventh Five Year Plan (2007-2012), the goal was to reduce the number of people living in poverty by 10% by 2017 by providing 7 million new jobs.
- The Twelfth Five-Year Plan set the goal of decreasing poverty by 2% each year and by a total of 10% by 2017.
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37. According to the World Development Report 2005, the percentage of the population in India earning less than $ 2 per day is :
(a) 50%
(b) 60%
(c) 70% (
d) 80%
[U.P.P.C.S. (Mains) 2004]
Ans. (d) 80%
- The World Development Report from 2005 showed that 80% of people in India were making less than $2 a day.
- The World Bank’s most recent data from 2011 shows that 22.5% of people in India were living on less than $1.90 a day when adjusted for inflation.
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38. According to the latest (2003) estimates of FAO, India’s contribution to the World’s hungry population is :
(a) 10%
(b) 25%
(c) 30%
(d) 15%
[U.P.P.C.S. (Mains) 2003]
Ans. (c) 30%
- Based on calculations, choice (c) was the right answer. According to the Food and Agriculture Organization’s (FAO) data from 2015, India had 25% (194.6 million) of the world’s hungry population (794.6 million).
- The UN World Food Programme’s latest figures (from August 2021) say that India has a quarter of the world’s undernourished people.
- India is 101st out of 116 countries on the Global Hunger Index for 2021.
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39. What is the India’s rank in the Global Hunger Index (GHI) in 2017?
(a) 100th
(b) 101th
(c) 104th
(d) 105th
[U.P.P.C.S. (Pre) 2019]
Ans. (a) 100th
- In 2017, India was ranked 100th out of 119 countries in the Global Hunger Index (GHI).
- This report was published by the International Food Policy Research Institute (IFPRI).
- The GHI is a tool to measure and track hunger at a global, regional, and national level.
- In 2020, India was 94th out of 107 countries.
- In 2021, India dropped to 101st out of 116 countries.
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40. Which of the following is/are the indicator/indicators used by IFPRI to compute the Global Hunger Index Report?
1. Undernourishment
2. Child stunting
3. Child mortality
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1, 2 and 3
(d) 1 and 3 only
[I.A.S. (Pre) 2016]
Ans. (c) 1, 2 and 3
- The Global Hunger Index is a way to measure and track hunger around the world. It was made in 2006 by the International Food Policy Research Institute in the US and Welthungerhilfe in Germany. In 2018, IFPRI stopped being involved and the GHI became a project of Welthungerhilfe and Concern Worldwide. The four indicators used to figure out the values for each country in the GHI are…
-
- Undernourishment: The share of the population that is undernourished (that is, whose caloric intake is insufficient);
- Child Wasting: The share of children under the age of five who are wasted (that is, who have low weight for their height, reflecting undernutrition);
- Child Stunting: The share of children under the age of five who are stunted (that is, who have low height for their age, reflecting chronic undernutrition); and
- Child Mortality: The mortality rate of children under the age of five (in part, a reflection of the total mix of inadequate nutrition and unhealthy environments).
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41. Among which one of the following sets of social/religious groups is the extent of poverty the highest, as per Government Statistics for the nineties?
(a) Muslims in Kerala, Gujarat, and A.P.
(b) Tribals in Bihar, Orissa, M.P., and Maharashtra
(c) Scheduled Castes in Punjab, Western UP, Northern Rajasthan and Tamil Nadu
(d) Christians in Gujarat, Maharashtra and Assam.
[I.A.S. (Pre) 1999]
Ans. (b) Tribals in Bihar, Orissa, M.P. and Maharashtra
- In the 1990s, government data showed that the poorest people in the states of Bihar, Odisha, Madhya Pradesh, and Maharashtra were tribal people.
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42. According to a survey conducted by the ‘National Council for Applied Economic Research’ (data released recently), which State in India has the highest percentage of the population below the poverty line?
(a) Jharkhand
(b) Bihar
(c)Chhattisgarh
(d) Madhya Pradesh
[U.P.P.C.S. (Mains) 2009]
Ans. (b) Bihar
- According to the National Council for Applied Economic Research survey, the state of Bihar had the highest percentage of the population below the poverty line among the given states.
- The Planning Commission’s estimates from July 2013 showed that Chhattisgarh had the highest poverty ratio at 39.93%, while Jharkhand, Bihar, and Madhya Pradesh had poverty ratios of 36.93%, 33.74%, and 31.65%, respectively.
|
43. Assertion (A): Bihar is a backward State of the country.
Reason (R): It is characterized by regional disparities in the level of development.
Select the correct answer from the codes given below:
Codes :
(a) Both (A) and (R) are correct and (R) is the correct explanation of (A)
(b) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false. (d) (A) is false, but (R) is true.
[U.P. Lower Sub. (Pre) 2015]
Ans. (b) Both (A) and (R) are correct and (R) is not the correct explanation of (A).
- The reasons behind Bihar’s backwardness are due to the social, economic and political conditions present in the area.
- Low wages, illiteracy, social stigmas, lack of businesses and industry, and little political drive are all major contributors to Bihar’s lag in development.
- In addition, there are differences in the levels of development across the region, although this is not the cause of the backwardness, but rather a consequence of it.
|
44. As per the Planning Commission Report of 1999-2000 the highest percentage of people living below the poverty line was in :
(a) Bihar
(b) Madhya Pradesh
(c) Odisha
(d) Uttar Pradesh
[U.P.U.D.A./L.D.A. (Pre) 2002, Uttarakhand P.C.S. (Pre) 2002, 2006, U.P.P.C.S. (Pre) 2003, 2005, U.P. Lower Sub. (Pre) 2002, U.P.P.S.C. (RI) 2014]
Ans. (c) Odisha
- State Number of State Poverty and ratio
- Poor (in lakh) Ratio (in %)
Uttar Pradesh 598.19
Chhattisgarh 39.93
Bihar 358.15
Jharkhand 36.96
Madhya Pradesh 234.06
Manipur 36.89
Maharashtra 197.92
Arunachal Pradesh 34.67
W. Bengal 184.98
Bihar 33.74
|
45. As per the estimates of the Planning Commission, which State had the highest number of poor people living below the poverty line in 2011-12?
(a) Madhya Pradesh
(b) Bihar
(c) Uttar Pradesh
(d) Maharashtra
[U.P.P.C.S. (Pre) 2014]
Ans. (c) Uttar Pradesh
- Uttar Pradesh had the greatest amount of impoverished people living below the poverty line at almost 6 crore in 2011-12, followed by Bihar with 3.58 crore, Madhya Pradesh with 2.34 crore, Maharashtra with 1.97 crore and West Bengal with 1.84 crore.
|
46. The Planning Commission has updated recently the poverty estimates for the year 2011-12. According to these estimates, what is the percentage of the population below the poverty line in Rajasthan?
(a) 25 percent
(b) 20 percent
(c) 15 percent
(d) 22 percent
[R.A.S./R.T.S. (Pre) 2013]
Ans. (c) 15 percent
- In July 2013, the Planning Commission revealed that 14.71% of the people in Rajasthan were living in poverty in 2011-12.
- This means that 102.92 lakh people in Rajasthan were living below the poverty line at that time.
- Option (c) is the correct answer to this.
|
47. The poverty ratio based on the methodology adopted by Dr. C. Rangarajan Expert Group was incorrect for the State for the year 2011-12 in relation to the population of the State of
(a) All India 29.5%
(b) Chhattisgarh 37.9%
(c) Goa 6.3%
(d) Rajasthan 21.7%
[R.A.S./R.T.S. Pre (Re-Exam) 2013]
Ans. (b) Chhattisgarh 37.9%
- According to Dr. C. Rangarajan’s method, the poverty rate in India in 2011-12 was 29.5%. Chhattisgarh had the highest poverty rate at 47.9%, and Goa had the lowest at 6.3%. The other states with the highest poverty rates were Manipur (46.7%), Odisha (45.9%), Madhya Pradesh (44.3%), and Jharkhand (42.4%).
- The states with the lowest poverty rates were Himachal Pradesh (10.9%), Kerala and Punjab (11.3%), and Haryana (12.5%).
- The government did not take action on this report.
|
48. Which of the following States has the minimum percentage of the population below the poverty line?
(a) Punjab
(b) Haryana
(c) Himachal Pradesh
(d) Delhi
[U.P.P.C.S. (Mains) 2011]
Ans. (c) Himachal Pradesh
- According to the Planning Commission’s July 2013 report (using the Tendulkar method), the states/territories with the lowest poverty rates in 2011-12 were Andaman and Nicobar Islands (1%), Lakshadweep (2.77%), Goa (5.09%), Kerala (7.05%), Him
|
49. The minimum percentage of the population below the poverty line is recorded in :
(a) Jammu and Kashmir
(b) Punjab
(c) Haryana
(d) Goa
[U.P.P.C.S (Pre) 2010]
Ans. (d) Goa
- As per the poverty estimates based on Tendulkar methodology, the poverty ratio of the given States is as follows :
- State Poverty Ratio (%) 2004-05 2009-10 2010-11
Jammu & Kashmir 13.1 9.4 10.35
Punjab 20.9 15.9 8.26
Haryana 24.1 20.1 11.16
Goa 24.9 8.7 5.09
- Hence, among the given States, Goa had the lowest percentage of the population below the poverty line for the year 2009-10 and 2010-11, while for the year 2004-05, Jammu & Kashmir had the lowest poverty ratio among these States.
|
50. Which one of the following States has the least percentage of its population below the poverty line?
(a) Andhra Pradesh
(b) Gujarat
(c) Kerala
(d) Punjab
[U.P.P.S.C. (GIC) 2010, U.P.P.C.S. (Spl.) (Mains) 2004]
Ans. (c) Kerala
- As per the estimates (based on Tendulkar methodology) for the years 2004-05, 2009-10, and 2011-12, the proportion of the population living below the poverty line (in percentage) in the given States are as follows: State Poverty Ratio (%) 2004-05 2009-10 2011-12
Kerala 19.6 12.0 7.05
Punjab 20.9 15.9 8.26
Andhra Pradesh 29.6 21.1 9.20
Gujarat 31.6 23.0 16.63
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51. According to the report of the World Bank, more than 50 percent of the poor in India, live in these four states :
(a) Bihar, Uttar Pradesh, Madhya Pradesh, Odisha
(b) Rajasthan, Uttar Pradesh, Madhya Pradesh, Odisha
(c) Bihar, Uttar Pradesh, Jammu & Kashmir, Odisha
(d) Bihar, Odisha, Madhya Pradesh, Jammu & Kashmir
[48th to 52nd B.P.S.C. (Pre) 2008]
Ans. (a) Bihar, Uttar Pradesh, Madhya Pradesh, Odisha
- The World Bank report stated that over half of the poor people in the country lived in Bihar, Uttar Pradesh, Madhya Pradesh, and Odisha in 2011-12. Of these, Uttar Pradesh had the most poor people with 598.19 lakhs, followed by Bihar with 358.15 lakhs, Madhya Pradesh with 234.06 lakhs, Maharashtra with 197.92 lakhs, and West Bengal with 184.98 lakhs.
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52. Which one of the following pairs is correct? Percentage of Population below Poverty Line (1993-94) State Percentage
(a) Punjab 45.3%
(b) Bihar 13.8%
(c) Uttar Pradesh 49.5%
(d) Rajasthan 34.3%
[R.A.S./R.T.S. (Pre) 1994]
Ans. (*)
- The percentage of the population below the poverty line (poverty ratio) in the given States is as follows:
State Poverty Ratio (%) 1993-94 2011-12
Punjab 11.77% 8.26%
Bihar 54.96% 33.74%
Uttar Pradesh 40.85% 29.43%
Rajasthan 27.41% 14.71%
- Hence, none of the given options are correctly matched.
|
53. For Bihar, in 1993-94, the Planning Commission estimated that the percentage of below the poverty line (BPL) was :
(a) 55
(b) 65
(c) 45
(d) 35
[53rd to 55th B.P.S.C. (Pre) 2011]
Ans. (a) 55
- The percentage of the population below the poverty line (poverty ratio) in the given States is as follows:
State Poverty Ratio (%) 1993-94 2011-12
Punjab 11.77% 8.26%
Bihar 54.96% 33.74%
Uttar Pradesh 40.85% 29.43%
Rajasthan 27.41% 14.71%
- Hence, none of the given options are correctly matched.
|
54. Consider the following statements:
Assertion (A): Madhya Pradesh is called the Ethiopia of India.
Reason (R): Its hallmarks are excessive infantile mortality and malnutrition.
Select the correct answer using the codes given below:
Codes :
(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.
[U.P.P.C.S (Pre) 2010]
Ans. (a) Both(A) and (R) are true and (R) is the correct explanation of (A).
- In 2008, the India State Hunger Index showed that Madhya Pradesh was the worst off among all Indian states.
- The rate of malnutrition and infant mortality in this state was similar to countries in Africa like Ethiopia and Chad.
- For this reason, Madhya Pradesh was referred to as the Ethiopia of India.
- The assertion and reason both are correct, with the reason explaining the assertion correctly.
|
55. Which one of the following States is called ‘the Ethiopia of India’ because of the excessive malnutrition?
(a) Bihar
(b) Madhya Pradesh
(c) Jharkhand
(d) Odisha
[U.P.P.C.S. (Mains) 2010]
Ans. (b) Madhya Pradesh
- As per the India State Hunger Index (ISHI) published in the year 2008, among all Indian States, Madhya Pradesh was in the worst position.
- Here the condition of malnutrition and infant mortality rate were similar to the African countries like Ethiopia and Chad.
- Therefore, Madhya Pradesh was called Ethiopia of India.
- Hence, Assertion and Reason both are correct and Reason, explains the Assertion correctly.
|
56. Which of the following is a method to eradicate poverty?
(a) More investment in productive activities
(b) Increased savings
(c) Population control
(d) All of the above
[M.P.P.C.S. (Pre) 2011]
Ans. (d) All of the above
- Limiting the size of the population, saving more money (creating more wealth), and investing in activities that create value will help to get rid of poverty.
|
57. Assertion (A): Presently, there is no clear picture of the extent of poverty in India.
Reason (R): There have been major shifts in the strategy of poverty eradication programs.
Code:
(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
[U.P.P.C.S. (Pre) 1997]
Ans. (b) Both (A) and (R) are true, but (R) is not the correct explanation of (A)
- Right now, it’s not easy to figure out how many people in India are poor.
- The government’s earlier guesses of how many people were poor didn’t match up with the findings from the Tendulkar Committee.
- Also, the poverty reduction programs from the nineties didn’t work well, so they had to be changed.
- Both the statement and the reason are true, but the reason isn’t a good explanation for the statement.
|
58. How do District Rural Development Agencies (DRDAs) help reduce rural poverty in India?
1. DRDAs act as Panchayati Raj Institutions in certain specified backward regions of the country.
2. DRDAs undertake an area-specific scientific study of the causes of poverty and malnutrition and prepare detailed remedial measures.
3. DRDAs secure inter-sectoral and inter-departmental coordination and cooperation for the effective implementation of anti-poverty programs.
4. DRDAs watch over and ensure effective utilization of the funds intended for anti-poverty programs.
Which of the statement(s) given above is/are correct?
(a) 1, 2 and 3 only
(b) 3 and 4 only
(c) 4 only
(d) 1, 2, 3 and 4
[I.A.S. (Pre) 2012]
Ans. (b) 3 and 4 only
- District Rural Development Agencies (DRDAs) are responsible for decreasing poverty in rural India.
- They make sure that different departments work together to carry out successful poverty-elimination plans.
- They also keep an eye on the money set aside for getting rid of poverty and make sure it is used correctly.
|
59. Consider the following statements regarding Public Distribution Systems:
1. The main objective was to provide essential commodities at subsidized prices.
2. It was started as a price support program.
3. Food subsidy is provided by the State Governments.
Which of these statements is/are correct?
(a) 1, 2 and 3
(b) 1 and 2
(c) 1 and 3
(d) 3 only
[U.P. U.D.A./L.D.A. (Pre) 2013]
Ans. (b) 1 and 2
- In the 1960s, the Public Distribution System (PDS) was set up to offer basic goods at low prices.
- Food subsidies in India are given to farmers, the Food Corporation of India, and the people using the PDS.
- The government pays for these subsidies, and the amount of money given to each state depends on the economic cost set by the government.
|
60. The Public Distribution System is aimed at –
(a) Providing food security to the poor
(b) To prevent hoarding and black marketing
(c) To prevent overcharging by traders
(d) All of the above
[M.P.P.C.S. (Pre) 2008]
Ans. (d) All of the above
- The Public Distribution System (PDS) is a system of government-run stores that provide basic food and other items to people in need at low prices.
- The goal of PDS is to make sure that the poor have enough food, stop people from hoarding items, and stop private traders from taking advantage of shortages.
|
61. Which of the following programs was meant for the eradication of poverty in rural India?
(a) IRDP
(b) TRYSEM
(c) NREP
(d) All of the above
[U.P. U.D.A./L.D.A. (Mains) 2010]
Ans. (d) All of the above
- In 1980, three programs were launched to help end poverty in rural areas: the Integrated Rural Development Programme (IRDP), Training of Rural Youth for Self-Employment (TRYSEM), and the National Rural Employment Programme (NREP).
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62. The Mitigating Poverty in Western Rajasthan (MPoWR) Programme is supported by :
(a) Asian Development Bank (ADB)
(b) Japan International Cooperation Agency (JICA)
(c) International Fund for Agriculture Development (IFAD) and Ratan Tata Trust
(d) Canadian International Development Agency (CIDA)
[R.A.S./R.T.S. (Pre) 2018]
Ans. (c) International Fund for Agriculture Development (IFAD) and Ratan Tata Trust
- The MPoWR Programme was put into place in the six poorest areas of the Jodhpur division in Western Rajasthan.
- This project was funded by IFAD, the Rajasthan Government, Sir Ratan Tata Trust, banks, and the people affected by it.
- It began on 11 December 2008 and ended on 31 December 2017 after two additional extensions.
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63. Multidimensional Poverty Index includes i. Health ii. Education iii. Living Standard Select the correct answer from the codes given below :
Codes :
(a) Only (i) is correct
(b) Only (ii) and (iii) are correct
(c) Only (i) and (ii) are correct
(d) (i), (ii) and (iii) are correct
[U.P.P.C.S. (Pre) 2019]
Ans. (d) (i), (ii) and (iii) are correct
- In 2010, the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) created the Multidimensional Poverty Index (MPI).
- MPI looks at health, education, and quality of life to decide how poor a population is.
- The Global MPI is released each year by OPHI and UNDP and has been used to measure poverty in more than 100 developing countries.
|
64. Which one of the following indices is most suitable to assess the intensity of poverty in India?
(a) Human Development Index
(b) Gender Inequality Index
(c) Human Poverty Index
(d) Multi-dimensional Poverty Index
[U.P. Lower Sub. (Pre) 2015]
Ans. (d) Multi-dimensional Poverty Index
- In India and other less developed countries, the Multi-dimensional Poverty Index (MPI) is the best way to measure how much poverty there is.
- MPI looks at things like health, education, and quality of life to figure out how bad poverty is.
- MPI was first used in the 2010 Human Development Report.
|
65. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following?
1. Deprivation of education, health, assets, and services at the household level.
2. Purchasing power parity at the national level.
3. Extent of the budget deficit and GDP growth rate at the national level.
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
[I.A.S. (Pre) 2012]
Ans. (a) 1 only
- The MPI, created by OPHI with help from UNDP, looks at how poor people lack access to education, health care, basic necessities, and other services.
- It does not include how much money a country has, or how big their budget deficit or GDP growth rate is.
- The MPI has three main parts, each with different measurements or indicators.
- Poverty, Health, Education and Living Standards are the four indicators, each with different weights.
- Poverty is 1/3, Health and Education each 1/3, and Living Standards 1/3. Health and Education
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66. According to HDR 2013, the percentage of the population suffering from multidimensional poverty in India is :
(a) 63.4%
(b) 53.7%
(c) 44.1%
(d) 42.7%
[U.P.P.C.S. (Pre) 2014]
Ans. (b) 53.7%
- The Human Development Report of 2013 showed that option (b) was the right answer.
- The Human Development Report of 2020 said that 27.9% of people in India (377.5 million) are suffering from multidimensional poverty.
- India still has the highest amount of poverty in the world.
|
67. To know whether the rich are getting richer and the poor are getting poorer, it is necessary to compare :
(a) the wholesale price index over different periods of time for different regions
(b) the distribution of income of an identical set of income recipients in different periods of time
(c) the distribution of income of different sets of income recipients at a point of time
(d) the availability of foodgrains among two sets of people, one rich and the other poor, over different periods of time
[I.A.S. (Pre) 1994]
Ans. (b) the distribution of income of an identical set of income recipients in different periods of time
- To find out if the wealthy are becoming wealthier and the poor are getting poorer, we need to look at the same group of people’s incomes over time.
- By doing this, we can see how the gap in income between people is changing in an economy.
|
68. Which of the following is not responsible for poverty?
(a) Inadequate growth rate
(b) High growth rate of population
(c) Unemployment
(d) Increasing rate of investment
[U.P.P.C.S. (Mains) 2013]
Ans. (d) Increasing rate of investment
- The slow growth of the economy, the fast growth of the population, and the lack of jobs are causing poverty.
- Investing more money will help to increase productivity and earnings, which will help to reduce poverty.
|
69. Which of the following is not considered a social indicator of poverty?
(a) Less number of means of transport
(b) Illiteracy level
(c) Lack of access to healthcare
(d) Lack of job opportunities
[U.P.R.O./A.R.O. (Mains) 2017]
Ans. (a) Less number of means of transport
- Not being able to read, not having healthcare, few job options, not getting enough food, not having access to clean water and toilets, etc. are all signs of poverty.
- On the other hand, not having enough transportation is not seen as a sign of poverty.
|
70. The aim of the differentiated interest scheme was to provide concessional loans to
(a) Weaker Section of Society
(b) Public Sector Industries
(c) Public Limited Companies
(d) Big Exporters
[U.P. Lower Sub. (Pre) 2008]
Ans. (a) Weaker Section of Society
- In 1972, the Central Government began a program that gave cheaper loans to people in need.
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71. Recently Government of India has approved the proposal of providing loans to Women Self Health Groups (SHG) at a lower interest rate to eradicate poverty through women’s empowerment.
The interest rate is :
(a) 7.00%
(b) 7.50%
(c) 8.00%
(d) 8.50%
[U.P.P.C.S. (Mains) 2014]
Ans. (a) 7.00%
- The Union Cabinet approved in May 2013 a plan to give female-led Self-Help Groups (SHGs) lower interest rates on loans up to 3 lakh rupees.
- This was done under the National-Rural Livelihoods Mission (NRLM) program to help fight poverty and give women more power.
- The interest rate was set at 7%.
|
72. Who among the following has been chosen for the ‘Hoover Medal’ in March 2009 for his contribution to the upliftment of the poor and the rural people?
(a) Sam Pitroda
(b) A.P.J. Abdul Kalam
(c) M.S. Swaminathan
(d) Baba Amte
[U.P.P.C.S. (Mains) 2007]
Ans. (b) A.P.J. Abdul Kalam
- On March 27, 2009, Dr. A.P.J. Abdul Kalam was chosen to receive the ‘2008 Hoover Medal’ in New York.
- This award was given to him in recognition of his efforts to help those in poverty and living in rural areas.
|
73. Who among the following has given the idea of Self-Help Groups as an effective tool for poverty alleviation?
(a) Amartya Sen
(b) Md. Yunus
(c) S. Chakravarti
(d) Venkaiah Naidu
(e) None of the above/More than one of the above
[64th B.P.S.C. (Pre) 2018]
Ans. (b) Md. Yunus
- Md. Yunus is a Bangladeshi humanitarian who won the Nobel Peace Prize in 2006 for starting the Grameen Bank.
- He believes that microloans and Self-Help Groups (SHGs) are useful for reducing poverty.
- He helped millions of Bangladeshis by creating a system of microloans.
- To ensure repayment, Grameen Bank started ‘solidarity groups’ where small groups of people would apply for loans together and act as guarantors for each other.
|
74. The third SAARC Ministerial Conference on Poverty Alleviation was held in :
(a) Kathmandu
(b) New Delhi
(c) Islamabad
(d) Dhaka
[U.P.P.C.S. (Mains) 2002]
Ans. (c) Islamabad
- In April 2002, the third SAARC Ministerial Conference focused on reducing poverty was held in Islamabad, Pakistan.
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75. The main features of the Indian social structure are :
(i) Excess population in villages
(ii) Various religions
(iii) Various Castes
(iv) Poverty
Select the correct answer from the codes given below :
(a) (i), (ii) and (iii)
(b) (i), (iii) and (iv)
(c) (iii) and (iv)
(d) (ii) and (iv)
[U.P. R.O./A.R.O. (Mains) 2014]
Ans. (a) (i), (ii) and (iii)
- In India, many villages have a large population, and there is a lot of diversity in terms of ethnicity, language, religion, and caste.
- This is known as a traditional, multicultural society.
- Unfortunately, poverty is also a big issue in the social and economic structure.
|
76. With reference to the Indian economy after the 1991 economic liberalization, consider the following statements:
1. Worker productivity (Rs. per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas.
2. The percentage share of rural areas in the workforce steadily increased.
3. In rural areas, the growth in the non-farm economy increased.
4. The growth rate in rural employment decreased.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 and 4 only
(c) 3 only
(d) 1, 2 and 4 only
[I.A.S. (Pre) 2020]
Ans. (b) 3 and 4 only
- The NITI Aayog’s paper “Changing Structure of Rural Economy of India: Implications for Employment and Growth 2017” showed that worker productivity in rural areas increased from Rs. 32273 in 2004-05 to Rs. 101755 in 2011-12, while worker productivity in urban areas increased from Rs. 120419 in 2004-05 to Rs. 282515 in 2011-12.
- This means that worker productivity has gone up.
- Therefore, statement 1 is wrong. The percentage of people living in rural areas who work has gone down from 77.8% in 1993-94 to 70.9% in 2011-12.
- So, statement 2 is wrong too. The amount of farming that happens in rural areas has decreased from 57.0% in 1993-94 to 39.2% in 2011-12, and the number of non-farming jobs has increased.
- So, statement 3 is right. The rate of growth in rural jobs has gone from 1.45% during
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77. The rate of growth of employment in India has generally been of the order of :
(a) 2 percent annum
(b) 3 percent per annum
(c) 5 percent per annum
(d) 7 percent per annum
[U.P.P.C.S. (Pre) 1998]
Ans. (a) 2 percent annum
- According to the data, the employment rate in India was increasing at a rate of almost 2 percent each year.
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78. The unemployment problem leads to poverty because
(a) People living below the poverty line increase
(b) There is a rapid increase in the population
(c) It increases inflation
(d) It leads to a rise in interest rate
[Uttarakhand P.C.S. (Pre) 2010]
Ans. (a) People living below the poverty line increase
- When people are not working, it means that their skills and abilities cannot be used to make money.
- This leads to a drop in income, and people close to living in poverty may fall below the poverty line.
- This means that unemployment causes poverty.
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79. Name the Indian State that has the maximum percentage of educated unemployed persons.
(a) Kerala
(b) Andhra Pradesh
(c) Madhya Pradesh
(d) Gujarat
[Uttarakhand P.C.S. (Pre) 2006]
Ans. (a) Kerala
- K.P. Kannah, an economist from Kerala, believes that the high rate of unemployment in Kerala is due to the fact that many people are unable to find a job that matches their qualifications.
- Kerala has the most educated unemployed people in India.
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80. Consider the following statements and select the correct answer using the code given below: Assertion (A): Educated unemployment increases with a high rate of economic growth.
Reason (R): It happens only when there is a lack of professional education.
Codes :
(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
[U.P.P.C.S. (Pre) 2006, U.P.P.C.S. (Mains) 2005]
Ans. (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
- As the economy grows, more jobs become available.
- People who have the right education can easily find work, but those who don’t have professional or skilled training struggle to find employment.
- This leads to more people getting educated in order to obtain a job.
- According to the ‘State of Working India 2018’ report by Azim Premji University, India’s economy is increasing quickly, but people with higher levels of education have the most unemployment compared to the national average.
- Employment is not growing fast enough, with only a small increase of less than one percent.
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81. In the following question, a statement followed by two assumptions numbered I and II are given. You have to consider the statement and the assumptions and decide which of the assumptions follows from the statement.
Statement: Unemployment allowance should be given to all unemployed Indian youth above 18.
Assumptions: I. Unemployed youth in India need monetary support.
II. The government has sufficient funds to provide allowance to all unemployed youth.
(a) Only I follow
(b) Only II follows
(c) Either I or II follows
(d) Both I and II follow
[R.A.S./R.T.S.(Pre) 2013]
Ans. (a) Only I follow
- The first idea must be accepted in order for the statement to be true.
- Young people without jobs need financial aid to meet their basic needs and achieve their goals.
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82. Assertion (A): Roots of urban poverty lie in rural areas.
Assertion (B): The level of education is normally low in rural areas.
Consider the above statements and find out the correct answer from the code given below :
(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.
[U.P. R.O./A.R.O. (Mains) 2013]
Ans. (a) Both (A) and (R) are true and (R) is the correct explanation of (A).
- People often move from rural to urban areas looking for work. Rural areas usually have lower levels of education, which means that those who move to urban areas often find low-paying jobs and remain poor.
- This increases the amount of poverty in cities.
- Both the statement (A) and the reason (R) are correct, and the reason explains the statement.
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83. As per the number of employed males per thousand in urban areas in the years 1999-2000, put the names of the following States in descending order:
A. Meghalaya
B. Nagaland
C. Assam
D. West Bengal
Select the correct answer from the codes given below :
(a) D, C, A, B
(b) A, B, C, D
(c) D, C, B, A
(d) D, A, C, B
[U.P.P.C.S. (Pre) 2003, U.P.U.D.A./L.D.A.(Pre) 2001]
Ans. (c) D, C, B, A
- The data from 1999-2000 is not available and not useful in this situation.
- The number of employed males in urban areas for each of the states in 2013-14 is Assam 774, West Bengal 755, Meghalaya 651, and Nagaland 642.
- So, the correct order of the states is Assam, West Bengal, Meghalaya, and then Nagaland. Option (c) was the right answer according to the question
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84. Employment growth in the organized sector in India during the period between 1994 and 2007 has :
(a) stable
(b) increased
(c) declined
(d) doubled
[U.P.P.C.S. (Spl.) (Mains) 2008]
Ans. (c) declined
- According to the Economic Survey 2009-10, the number of jobs in India’s public and private sector combined decreased from 1994 to 2007.
- During 1983-94, employment in the organized sector rose by 1.2 percent each year, but from 1994 to 2007, the growth rate dropped to -0.03 percent annually.
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85. Most of the unemployment in India is :
(a) Technological
(b) Cyclical
(c) Frictional
(d) Structural
[Uttarakhand P.C.S. (Pre) 2010]
Ans. (d) Structural
- In India and other developing or underdeveloped countries, there is often a lot of unemployment.
- This is because there is a gap between the skills of the people looking for work and the type of jobs available.
- This is caused by poor education and training, the lack of economic resources, and too many people looking for work.
- People in India often cannot find the right jobs for their skills or they do not have the right skills, and due to the low levels of education, it can be difficult to provide them with the necessary training.
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86. Disguised unemployment means :
(a) Unemployment resulting from change in technology
(b) Fall in productivity of labor
(c) Marginal productivity of labor is zero
(d) People in large numbers remaining unemployed
[J.P.S.C. (Pre) 2016]
Ans. (c) Marginal productivity of labor is zero
- Disguised unemployment is a situation where there is too much manpower employed, and some workers are not actually contributing to the production of goods and services.
- This is also known as hidden unemployment, and it means that more people are doing a job than is necessary.
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87. Disguised unemployment refers to :
(a) persons with no jobs
(b) unemployment among housewives
(c) unemployment among people above 60 years of age
(d) employment of more persons in a job which a lesser number of persons can accomplish
[U.P.P.C.S. (Mains) 2004, U.P.P.C.S.(Spl.) (Mains) 2008, U.P.P.S.C.(GIC) 2010]
Ans. (d) employment of more persons in a job which a lesser number of persons can accomplish
- Disguised unemployment is when there are too many people working, but they’re not actually needed for the job.
- This is also known as hidden unemployment, and it means that too many people are doing a job that could be done by fewer people.
- In other words, more people are employed than necessary, and their work doesn’t actually contribute to the production of goods or services.
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88. Disguised unemployment generally means :
(a) a large number of people remain unemployed
(b) alternative employment is not available
(c) the marginal productivity of labor is zero
(d) productivity of workers is low
[I.A.S. (Pre) 2013]
Ans. (c) the marginal productivity of labor is zero
- Disguised unemployment is when too many people are employed in a job that could be done with fewer people.
- It is also known as hidden unemployment and means that the extra people are not making any contribution to the production of goods and services.
- This means that if these extra people were removed, it would not affect the amount of output.
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89. In India disguised unemployment is the main characteristic of :
(a) Tertiary Sector
(b) Secondary Sector
(c) Primary Sector
(d) None of the above
[U.P. Lower Sub. (Pre) 2004]
Ans. (c) Primary Sector
- In India, there is a lot of hidden unemployment in the primary sector (agriculture and related activities).
- This is because there are so many people and not enough land and resources.
- Due to a lack of modern technology, most people are still working in this sector, but there are too many workers doing jobs that could be done by a smaller number of people.
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90. In India disguised unemployment is found in:
(a) Agricultural sector
(b) Industrial sector
(c) Service sector
(d) Trade sector
[U.P.P.C.S. (Mains) 2006]
Ans. (a) Agricultural sector
- Many people who work in farming in India are not really needed, with about 25-30% of the rural population not doing any meaningful work.
- This is known as disguised unemployment.
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91. Disguised unemployment in India is mainly related to
I. Agricultural sector
II. Rural Area
III. Manufacturing sector
IV. Urban area Select the correct answer from the codes given below:
Codes :
(a) I and III
(b) II and IV
(c) III and IV
(d) I and II
[U.P.P.C.S. (Mains) 2017]
Ans. (d) I and II
- In disguised unemployment, more people are employed than is actually necessary.
- This is seen mostly in poorer countries with labor-intensive economies, like India, where it is mainly found in rural agriculture.
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92. The number of persons who remained unemployed for a major part of the year is called :
(a) Usual status unemployment
(b) Daily status of unemployment
(c) Weekly status of unemployment
(d) None of the above
[U.P.P.C.S. (Pre) 2019]
Ans. (a) Usual status unemployment
- The Usual Status method for measuring unemployment looks at the last 365 days before the National Sample Survey Organisation (now NSO) survey to see how many people were unemployed for a major part of the year.
- This way, the estimates of unemployment can take into account longer-term joblessness.
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93. Which of the following methods is not used by N.S.S.O. for the measurement of unemployment in India?
(a) Usual Principal Status
(b) Current Monthly Status
(c) Current Weekly Status
(d) Current Daily Status
[U.P.P.C.S. (Mains) 2005, U.P.P.C.S. (Mains) 2016]
Ans. (b) Current Monthly Status
- The National Sample Survey (NSS) in India looks at people’s activities in three different timeframes: one year, one week, and each day of the week.
- The activity status of a person is determined based on these three periods.
- The activity status based on a one-year period is known as the usual principal status.
- The activity status based on a one-week period is known as the current weekly status.
- The activity status based on each day of the week is known as the current daily status.
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94. In India which one of the following collects and publishes the unemployment Index?
(a) Planning Commission
(b) Finance Commission
(c) N.S.S.O.
(d) U.N.O.
[U.P. P.C.S. (Mains) 2014]
Ans. (c) N.S.S.O.
- The National Sample Survey Office (NSSO) does surveys on employment and unemployment that provide information used for planning and policy-making by the government and researchers.
- In 2019, the NSSO merged with the Central Statistical Office (CSO) to form the National Statistical Office (NSO).
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95. The growth rate of which one of the following sectors has very low employment elasticity?
(a) Manufacturing
(b) Construction
(c) Financial Services
(d) Mixed Farming
[I.A.S. (Pre) 1993, M.P.P.C.S. (Pre) 1997]
Ans. (d) Mixed Farming
- Employment elasticity tells us how much employment changes when the economy grows by 1%.
- We can see how each sector of the economy responds to economic growth in the table below.
- For example, in the period from 1999 to 2010, the construction sector had an employment elasticity of 1.13, meaning that for every 1% of economic growth, employment in construction increased by 1.13%.
- The lowest elasticity was seen in agriculture, which had an elasticity of 0.04%.
- The overall elasticity for all sectors was 0.19.
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96. Which one of the following is not responsible for unemployment?
(a) Rapid growth of population
(b) Lack of skill
(c) Growth of per capita income
(d) Lack of manpower planning
[U.P.P.C.S. (Mains) 2014]
Ans. (c) Growth of per capita income
- Increases in personal income are not the reason for long-term joblessness, but rapid population growth, lack of knowledge and not having a plan for managing personnel are the main causes.
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97. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R).
Assertion (A): The labor force participation rate has fallen sharply in recent years for females in India.
Reason (R): The decline in the labor force participation rate is due to the improved family income and increase in education.
Codes :
(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
[U.P.P.C.S. (Pre) 2019]
Ans. (a) Both (A) and (R) are true and (R) is the correct explanation of (A)
- In the last few years, the number of women who take part in the workforce in India has gone down drastically.
- In 1999-2000, 26.2% of women participated in the labor force, but that went down to 22.5% in 2011-2012 and 17.5% in 2017-2018 (according to NSSO data).
- Various economic and social factors, both at the family and larger society level, influence women’s decision and ability to work.
- Studies from around the world show that educational attainment, fertility and marriage age, economic growth, social norms, and urbanization are some of the biggest influencing factors in falling female labor force participation rates.
- In India, this can be attributed to the higher enrollment of young women in school, a lack of job opportunities, and rising household incomes.
- Both statements are true, and the second statement explains the first one correctly.
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98. What was the Current Daily Status (CDS) unemployment rate in India as per the National Sample Survey 2011-12?
(a) 2.2 percent
(b) 5.6 percent
(c) 8.0 percent
(d) 7.1 percent
(e) 7.3 percent
[Chhattisgarh P.C.S. (Pre) 2016]
Ans. (b) 5.6 percent
- The National Sample Survey from 2011-12 showed that 5.6% of people in India were unemployed on a daily basis, while 3.7% were unemployed on a weekly basis and 2.7% were usually unemployed.
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99. According to NSS 61st round data, unemployment at current daily status in rural as well as urban areas is nearly :
(a) 8 %
(b) 5 %
(c) 2 %
(d) 15 %
[U.P.P.C.S.(Pre) 2013]
Ans. (a) 8 %
- The latest survey conducted by the National Sample Survey (NSS) in 2011-12 showed that the unemployment rate in rural and urban areas was 5.9% and 5.5% respectively.
- The overall unemployment rate for the whole of India was 5.6% during this period.
- According to the Periodic Labour Force Survey (PLFS) report for 2019-20, the unemployment rate nationwide was 4.8%, with rural areas having a lower unemployment rate than urban areas (4.0% and 7.0%).
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