Topic 1: Poverty
Multiple Choice Questions (MCQs)
1.Which of the following describes a situation where an individual's income is insufficient to meet their basic needs for survival?
a) Relative poverty
b) Social exclusion
c) Absolute poverty
d) Income inequality
Correct Answer: c) Absolute poverty
2.The concept of 'poverty line' in India is primarily used to measure:
a) Relative poverty
b) Absolute poverty
c) Human poverty
d) Multidimensional poverty
Correct Answer: b) Absolute poverty
3.Which of the following is NOT typically considered a cause of poverty in India?
a) High population growth
b) Lack of access to quality education
c) Rapid industrialization and job creation
d) Social discrimination and inequality
Correct Answer: c) Rapid industrialization and job creation
4.Which government program aims to provide food security to the poorest households in India by providing subsidized food grains?
a) Pradhan Mantri Jan Dhan Yojana (PMJDY)
b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c) National Food Security Act (NFSA)
d) Pradhan Mantri Awas Yojana (PMAY)
Correct Answer: c) National Food Security Act (NFSA)
5.When a person is considered poor compared to the average standard of living in their society, it is known as:
a) Absolute poverty
b) Cyclical poverty
c) Relative poverty
d) Generational poverty
Correct Answer: c) Relative poverty
6.Which of these is a major socio-cultural factor contributing to poverty in India?
a) Low agricultural productivity
b) The caste system and gender disparities
c) Insufficient foreign investment
d) High inflation rates
Correct Answer: b) The caste system and gender disparities
7.The Self-Help Group (SHG) movement is a key strategy for poverty alleviation, primarily by:
a) Providing free education
b) Facilitating micro-finance and empowerment for women
c) Directly distributing food grains
d) Constructing public infrastructure
Correct Answer: b) Facilitating micro-finance and empowerment for women
8.Which of the following statements about the causes of poverty is most accurate?
a) Poverty is solely due to individual laziness.
b) Poverty is primarily caused by natural disasters.
c) Poverty often stems from a combination of economic, social, and political factors.
d) Global trade imbalances are the only cause of poverty.
Correct Answer: c) Poverty often stems from a combination of economic, social, and political factors.
9.The Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) focuses on:
a) Providing urban housing for the poor.
b) Organizing rural poor into Self-Help Groups (SHGs) and providing financial support.
c) Offering free healthcare services.
d) Promoting agricultural exports.
Correct Answer: b) Organizing rural poor into Self-Help Groups (SHGs) and providing financial support.
10.What is a common criticism associated with the 'poverty line' approach to measuring poverty?
a) It overestimates the number of poor people.
b) It only considers relative deprivation.
c) It often fails to capture the multidimensional aspects of poverty beyond income.
d) It is too complex to calculate.
Correct Answer: c) It often fails to capture the multidimensional aspects of poverty beyond income.
Short Questions
1.Define absolute poverty.
Answer: Absolute poverty is a condition where individuals lack the minimum amount of food, safe drinking water, adequate shelter, healthcare, and education to sustain life. It is measured against a fixed standard, often a poverty line.
2.How does relative poverty differ from absolute poverty?
Answer: Absolute poverty refers to a severe deprivation of basic human needs, while relative poverty describes a situation where individuals lack a minimum amount of income or resources needed to maintain the average standard of living in their society, thus being 'poor' in comparison to others.
3.Name two economic causes of poverty in India.
Answer: Two economic causes of poverty in India are: low agricultural productivity (leading to low farmer incomes) and lack of access to productive assets (like land, capital) for a large segment of the population.
4.Mention two social causes of poverty in India.
Answer: Two social causes of poverty in India are: the prevalent caste system and social discrimination (which restricts opportunities for certain groups), and gender inequality (limiting women's access to education and employment).
5.What is the primary objective of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?
Answer: The primary objective of MGNREGA is to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
6.How does financial exclusion contribute to poverty?
Answer: Financial exclusion contributes to poverty by denying the poor access to essential financial services like credit, savings, insurance, and remittances. Without these services, individuals find it difficult to invest in income-generating activities, manage financial shocks, or build assets.
7.Briefly explain the role of the National Food Security Act (NFSA) in poverty alleviation.
Answer: The NFSA aims to provide food and nutritional security by ensuring access to an adequate quantity of quality food at affordable prices. It provides highly subsidized food grains (rice, wheat, coarse grains) to priority and Antyodaya households, thereby protecting them from hunger and malnutrition.
8.What are Self-Help Groups (SHGs) and how do they help in poverty alleviation?
Answer: Self-Help Groups (SHGs) are small, informal groups of people, typically women, who come together to pool their savings and provide small loans to members at reasonable interest rates. They help in poverty alleviation by promoting thrift, providing financial access, fostering entrepreneurship, and empowering members socially.
9.Give one example of a demographic cause of poverty in India.
Answer: High population growth, particularly in past decades, has put immense pressure on limited resources and job opportunities, exacerbating poverty by increasing the number of dependents per earner and reducing per capita availability of resources.
10.Why is land reform often considered important for poverty alleviation in rural areas?
Answer: Land reform is considered important because it addresses issues of unequal land distribution. By redistributing land to the landless or marginal farmers, it provides them with a productive asset, empowering them to cultivate crops, earn income, and improve their livelihoods, thereby directly tackling rural poverty.
Long Questions (5 Marks each)
1. Discuss the various causes of poverty in India, covering economic, social, and demographic factors. In your answer, highlight how these factors are interconnected.
Answer: Poverty in India is a complex, multi-dimensional issue rooted in a combination of deeply entrenched economic, social, and demographic factors, which are often interconnected and reinforce each other.
Economic Causes:
Low Agricultural Productivity:
A significant portion of India's population still relies on agriculture, which often suffers from disguised unemployment, reliance on monsoons, fragmented landholdings, and lack of modern technology, leading to low incomes for farmers.
Unemployment and Underemployment:
The economy has struggled to generate sufficient quality jobs for its rapidly growing workforce. This leads to open unemployment (especially among youth) and widespread underemployment (people working in jobs below their skill level or for fewer hours than desired), resulting in low and unstable incomes.
Inequality in Asset Distribution:
Unequal distribution of productive assets like land, capital, and access to credit means a large segment of the population, especially in rural areas, lacks the means to generate sustainable livelihoods.
Inadequate Infrastructure and Investment:
Lack of robust rural infrastructure (roads, electricity, irrigation) and insufficient investment in
labor-intensive
industries hinder economic diversification and job creation in areas where poverty is concentrated.
Social Causes:
Caste System and Social Discrimination:
Historically, the caste system has imposed occupational restrictions and social exclusion on lower castes, denying them access to education, land, and economic opportunities, perpetuating intergenerational poverty.
Gender Inequality:
Women often face discrimination in education, employment, and property rights, leading to lower wages, fewer opportunities, and increased vulnerability to poverty, especially in female-headed households.
Lack of Access to Quality Education and Healthcare:
Poor access to affordable, quality education limits skill development and job prospects, while inadequate healthcare leads to loss of working days and high out-of-pocket expenses, pushing households into poverty.
Regional Disparities:
Some states and regions are significantly poorer due to historical neglect, geographical disadvantages, or lack of investment, creating pockets of chronic poverty.
Demographic Causes:
High Population Growth:
While India's population growth has slowed, past high growth rates have led to increased pressure on scarce resources, fragmentation of landholdings, and a larger workforce than the economy could absorb, contributing to unemployment and low per capita income.
High Dependency Ratio:
Large family sizes in poorer households mean more dependents per earner, stretching limited resources and making it difficult to invest in education, health, and productive assets.
Interconnections: These factors are deeply interconnected. For instance, low agricultural productivity (economic) can lead to disguised unemployment (economic), forcing people to migrate to urban areas where they might face social discrimination (social) and live in slums with poor access to sanitation (social/economic). High population growth (demographic) can exacerbate land fragmentation (economic) and strain public services like education and healthcare (social), further entrenching poverty. Lack of quality education (social) limits individuals' ability to access better jobs (economic), trapping them in low-wage cycles. Thus, poverty is a vicious cycle where various factors reinforce each other, making it challenging to break out of without comprehensive interventions.
2. Enumerate and explain any four important poverty alleviation programmes currently in place in India, highlighting their objectives and target beneficiaries.
Answer: The Indian government has implemented numerous programs to tackle poverty. Here are four significant ones:
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA
):
Objective:
To enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. It also aims to create durable assets (e.g., roads, water conservation structures, irrigation canals) and strengthen Panchayati Raj institutions.
Target Beneficiaries:
Rural households, particularly those living below the poverty line and seeking manual work. It
prioritizes women's participation (at least one-third of beneficiaries should be women).
Impact:
Provides a crucial safety net and direct income support, especially during lean agricultural seasons or economic downturns. It helps prevent distress migration and empowers rural communities by involving them in asset creation.
Pradhan Mantri Jan
Dhan
Yojana (PMJDY):
Objective:
To ensure comprehensive financial inclusion for all households in India by providing universal access to banking facilities with at least one basic savings bank account, with an overdraft facility,
Rupay
debit card, and access to credit, insurance, and pension.
Target Beneficiaries:
Every unbanked household in India, particularly the rural poor, women, and marginalized sections.
Impact:
Has significantly expanded formal banking outreach, reducing financial exclusion. It facilitates direct benefit transfers (DBT) of various government subsidies and scheme benefits directly into beneficiaries' accounts, reducing leakages and empowering the poor to manage their finances, save, and access formal credit.
National Food Security Act (NFSA), 2013:
Objective:
To provide food and nutritional security by ensuring access to an adequate quantity of quality food at affordable prices. It legally entitles up to 75% of the rural population and 50% of the urban population to receive highly subsidized food grains.
Target Beneficiaries:
Priority Households and
Antyodaya
Anna Yojana (AAY) households (the poorest of the poor).
Impact:
Aims to eliminate hunger and malnutrition by providing essential food grains (rice, wheat, coarse grains) at highly subsidized prices (₹3, ₹2, ₹1 per kg respectively). It provides a crucial safety net against food insecurity and helps reduce absolute poverty by freeing up household income for other necessities.
Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM):
Objective:
To reduce poverty by enabling poor households to access gainful self-employment and skilled wage
employment opportunities, resulting in appreciable improvement in their livelihoods on a sustainable basis. It achieves this by mobilizing rural poor households into Self-Help Groups (SHGs) and providing them with capacity building, financial assistance, and access to markets.
Target Beneficiaries:
All rural poor households, with a special focus on women.
Impact:
Has been instrumental in empowering millions of rural women by fostering thrift, providing micro-finance linkages with banks, and supporting diverse livelihood activities (e.g.,
agri
-based, non-farm enterprises). It strengthens community institutions of the poor, enhancing their collective bargaining power and social capital.
