# Chapter 4 Poverty Case Study Questions

Please see Chapter 4 Poverty Case Study Questions and answers below. We have provided Case Study Questions for Class 11 Economics with answers for all chapters. Students should read the case study for Chapter 4 Poverty which is an important chapter in Class 11 Economics and then attempt the questions provided below. Our teachers have provided answers too so that students can check their solutions.

## Case Study Questions Chapter 4 Poverty

CASE STUDY-1

Read the following carefully and answer the following questions:

Questions:

Question. The official data on poverty is now made available to the public by the ________ It Is estimated on the basis of consumption expenditure data collected by the ___________ .

Answer

NITI Aayog, National statistical Office

Question. In terms of proportion, in 1973-74, about __________ percent of the total population was below the poverty line. In 2011-12, it has fallen to __________ percent.

Answer

55,22

Question. In 1990s, the absolute number of poor in rural areas had ________ whereas the number of their urban counterparts _________ marginally (increased/decreased).

Answer

decreased, increased

Question. When the number of poor is estimated as the proportion of people below the poverty line, it is known as _________ .

Answer

Head Count Ratio

CASE STUDY-2

The poverty line refers to a cut off point that divides people of a region as poor and non poor. Poverty line cutoff may be determined in terms of income or in terms of consumption .The percentage of the population below the poverty line is called the headcount ratio. The poverty incidence ratio is the same as the headcount ratio. Headcount ratio refers to the measurement of poverty in terms of number of person below the poverty line ,where the poverty line means some cutoff point with respect to the individual consumption expenditure per month. The poverty line usually measured in terms of per capita expenditure . Consumption reflects the actual use of goods and services by an individual as well as the type of goods actually used while income only shows the capacity to purchase

Questions:

Question. A cut off point dividing people as poor and non poor indicates the number of those who are:
(a) Absolute poverty
(b) Below poverty line
(c) Both a and b
(d) None of the above

Answer

A

Question. The absolute poverty in India is measured with reference to_____.

Answer

poverty line

Question. Poverty line cut off can be determined in terms of_____(Investment/ consumption)

Answer

consumption

Question. Poverty line is measured normally in terms of_______(per capita expenditure/ per capita income)

Answer

per capita expenditure

CASE STUDY-3

The line, which usually divides the population of the country as poor and non-poor. Accordingly, people having income below the poverty line are called poor and people with income above poverty line are called non-poor. As per this measure , the number of people below poverty line is called “ head Count Ratio”. While fixing a poverty line ,we must take adequate care so that the poverty line is neither too high nor too low rather it should be reasonable one.

Questions:

Question. Which measure is discussed above in paragraph?

Answer. Poverty line

Question. ________________divides the line into poor and non poor.

Answer

Poverty line

Question. What do you mean by head count ratio?

Answer. The number of people below the poverty line is called head count ratio

Question. Give various measurement of Poverty line in India.

Answer (a). Monthly per capita Expenditure
(b). Calorie based norm

CASE STUDY-4

Poverty can effectively be eradicated only when the poor start contributing to growth by their active involvement in the growth process.This is possible through a process of social mobilisation, encouraging poor people to participate and get them empowered. This will also help in creating employment opportunities which may lead to increase in levels of income, skill development, health and literacy.

Questions:

Question. Which one of the following are categorised as “most poor” ?
(a) Chronic poor
(b) Occasionally Poor
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Answer

A

Question. The incidence of poverty is greater in rural areas. ( True / False )

Answer

True

Question. Poverty can effectively be eradicated only when the ________ start contributing to growth process. (Rich / Poor)

Answer

Poor

Question. Define the concept of jobless growth.

Answer. It is a situation when the economy is able to produce more goods and services without a proportionate increase in employment opportunities

CASE STUDY-5

The planning commission constituted an expert group under the chairmanship of Dr. C. Rangarajan in June 2012 to ‘ Review the Methodology for Measurement of Poverty ‘.The Rangarajan Committee submitted its report in June 2014. It recommended separate consumption baskets for rural and urban areas. According to the recommended methodology of Rangarajan Committee, the Tendulkar national rural Poverty line has been raised from Rs.816 per capita per month at 2011-12 prices to Rs. 972 per capita per month the Tendulkar national urban Poverty line from Rs.1000 per capita per month at 2011-12 prices to Rs.1407

Questions:

Question. The government uses————- as proxy for income of households to identify the poor.

Answer

Monthly per capita expenditure (MPCE)

Question. Based on the monetary value ( per capita expenditure) of the minimum calorie intake, in 2011-12, the Poverty line was defined for rural areas as consumption worth———- per person a month and for urban areas, it was ———– .

Answer

Rs. 816, Rs.1000.

Question. The average calories required per person in urban area is
(a). 2400
(b).2100
(c). 2500
(d). 2150

Answer

B

Question. When the number of poor is estimated as the proportion of people below the Poverty line, it is known as———
(a).Headcount ratio
(b). Worker- population ratio
(c). Capital-gain ratio
(d). None of these

Answer

A

CASE STUDY-6
Increase in Equity Limit of Foreign Investment:
Equity limit of foreign capital investment has been raised from 40% to 100% percent. In 47 high priority industries foreign direct investment (FDI) to the extent of 100% will be allowed without any restriction. In this regard Foreign Exchange Management Act (FEMA) will be enforced. If the Indian economy is shining at the world map currently, its sole attribution goes to the implementation of the New Economic Policy in 1991.

Questions:

Question. List of Sectors reserved for Public Sectors in India

Answer. Railways and atomic energy

Question. Indian Government repay the External Debt by Printing New Currency? True/False.

Answer. False

Question. What was the changed limit of FDI?

Answer. In high priority industries foreign direct investment (FDI) to the extent of 100% will be allowed without any restriction.

Question. What is disinvestment?

Answer. When government sell its shares of PSU’S to private sector.

CASE STUDY-7

This paragraph talks about economic inequalities in India that have been driven by employment patterns and changes in labour markets, which in turn have been affected by macroeconomics policies and processes as well as forms of social discrimination and exclusion. While many Asian economies have shown indications of rising inequality in recent decades, the Indian experience is particularly remarkable in the way inequalities have intertwined with the economic growth process. Structural change and the persistence of low productivity employment in India are strongly related to falling wage shares of national income and growing wage inequalities and the close relationship between formal and informal sectors is the sharpest exemplar of this. Patterns of social discrimination along with gender and caste line have reinforced tendencies to create segmented labour markets that offer little incentive for employers to focus on productivity improvements.

Questions:

Question. Why did the government shift its strategy from long-term to short term programmes to remove unemployment?
(a). Short term policies are more effective.
(b). Long term policies do not give appropriate response.
(c). Its easy to check the progress.
(d). all the above

Answer

D

Question. Increase in proportion of casual workers as a proportion of total workforce is known as (informalization / casualization)

Answer. casualization

Question. ____________ is used to measure the concept to relative poverty.

Answer

Gini Coefficient

Question. Women participation in rural areas is found to be higher in rural areas as compared with areas in India, due to which of the following reason?
(a). Widespread poverty
(b). Male members do not earn sufficient income.
(c). Wages levels are low in rural areas.
(d). all the above

Answer

D

CASE STUDY-8
There are many ways to categorise poverty. In one such way people who are always poor and those who are usually poor but who may sometimes have a little more money are grouped together as the chronic poor. Another group are the churning poor who regularly move in and out of poverty and occasionally poor who are rich most of the time but may sometimes have a patch of bad luck. They are called transient poor. And then there are those who are never poor and they are the non-poor.

Questions:

Question. The method used to determine poverty line is ____________.

Answer

Monthly per capita expenditure

Question. Transient poor includes:
(a) Occasionally poor
(b) Churning poor
(c) Never poor
(d) Usually poor

Answer

A

Question. Which one of the following is categorized as most poor? _____________(Chronic poor/Occasionally poor).

Answer

Chronic poor

QuestionThe organisation which collects data on poverty in India is ____________.

Answer

National Sample Survey Organisation (NSSO)

CASE STUDY-9

The Indian national highway system was introduced and many roads were widened to accommodate the increasing traffic. Tourism also expanded. The twenty-point programme was launched on 14 January 1982. It was followed from 1974 to 1979. The Minimum Needs Programme (MNP) was introduced in the first year of the Fifth Five-Year Plan (1974–78). The
objective of the programme is to provide certain basic minimum needs and thereby improve the living standards of the people. It is prepared and launched by D.P.Dhar

Questions:

Question. When was fifth five year plan started?

Answer.  1974

Question. What were the main objectives of the plan?

Answer.  Employment and poverty alleviation

Question. When did Twenty point programme launched?

Answer. 1975

Question. What was the difference between targeted growth and actual growth rate?

Answer  0.6%

CASE STUDY-10

While India did gain its independence from British rule in 1947,The country still suffers from extreme poverty today. India has the largest number of poor people in one country of its nearly one billion inhabitants about 350 to 400 Million live in poverty. The division of resources and wealth is very uneven. for example Delhi Punjab, both urban areas have very low poverty rates. on the other hand in rural cities, Bihar and Odisha, 40 to 50 percentage of the population lives in destitution, among the world’s most extreme rates. Eradication of poverty can only be a long term goal in India. Poverty In India. is caused by number of factors. India was already in a weak state after becoming independent from Britain. However overpopulation tends to be the leading reason as there are poor employment opportunities in villages, people moved to city’s leading to crowded streets and unhealthy living conditions. Also, the belief of inferiority of women brought about the penury that Indians suffer from. If females were viewed as equal to men. They would be able to obtain a successful job, make money and provide for the family, however this is not the case. those living in rural areas depend on agriculture, which is dependent on rain patterns and the monsoon season. if there happens to be inadequate rain monsoon failure, crops cease to grow leading to a number of starving people. In addition, Indian families are generally made up of many members. Thus it is very difficult to provide for everyone. the caste system also plays a role in poverty i.e. Those in the lower classes are deprived of various opportunities. because of this more than 40% of India population is illiterate. just as the rest of the impoverished world, they are misinformed about diseases and sanitation. Consequently, Indians suffer from diseases such as polio and yellow fever. also many women are giving live birth without any medical assistance.

Questions:

Question. It has been observed that in recent time in India, poverty in urban areas has declined at a slower pace as compared with rural areas. which of the following reason can be counted for that?
(a) Migration of people from rural to urban areas
(b) etter poverty alleviation programs in rural areas
(c) Iincrease In density of population in urban areas
(d) Both A and C

Answer

D

Question. _________ (Absolute/Relative) Poverty is used to compare state of poverty in different regions of the country

Answer

Relative

Question. Which of the following has the major cause of poverty in India?
(a). Growth rate of population
(b).Caste discrimination
(c). Lack of development of agriculture sector
(d). All of these

Answer

D

Question. What are the 3 dimensional approach adopted by the Indian policymakers to address the problem of poverty?
(i) Growth orientation
(ii) Minimum basic needs
(iii) Poverty alleviation programs
(iv) Education and health for all
Choose from the options below:-
(a) i,ii and iv
(b). i,iii and iv
(c). i,ii and iii
(d). ii,iii and iv

Answer

C