CBSE Class 11 Economics Poverty Set 02

Question. A situation that shows inability to fulfilling the meagre necessities like – house, food, clothing, health facilities and health etc. is called as___________. ( Fill up the blank with correct answer)
Answer: Poverty

Question. ‘The urban poor are largely the overflow of the rural poor‘. The above statement indicates the problem of ____________. ( Fill up the blank with correct answer)
Answer: Migration.

Question. Those who regularly move in and out of poverty like small farmers are known as,
a) Chronic poor
b) Churning poor
c) Occasionally poor
d) Always poor
Answer: Churning poor

Question. Who is known as Chronic poor?
Answer: People who are usually poor and always poor are primarily known as Chronic poor.

Question. In pre-independent India, ___________was the first to discuss the concept of a Poverty Line. (Fill up the blank with correct answer)
Answer: Dadabhai Naoroji

Question. Identify the correct sequence of alternatives given in Column II by matching them with respective terms in Column I
COLUMN I                                                                COLUMN II
A. Study Group formed by Planning Commission          i) 2005
for Poverty      
B. ‗Task Force on Projections of the Minimum             ii) 1962
Needs and Effective Consumption Demand‘  
C. Mahatma Gandhi National Rural Employment          iii) 2014
Guarantee Act    
D. Jan DhanYojana                                                       iv)1979
Choose the correct alternative:
a) ii , iii , iv , i
b) iii , ii , i, iv
c) i , ii , iii , iv
d) ii , iv , i, iii
Answer: D

Question. Who are transient poor?
Answer: The people who move in and out of poverty line and those who some times come in the situation of poverty are transient poor. In other words they are Churning poor and Occasionally poor.

Question. In 2011-12, the poverty line was defined for rural areas as consumption worth ________per person a month and for urban areas it was __________. ( Fill in the blank with correct answer)
Answer: Rs 816, Rs 1,000.

Question. Due to various limitations in the official estimation of poverty, scholars have attempted to find alternative methods. Which of the following tool is not used for measuring poverty?
a) Sen Index
b) Poverty Gap Index
c) Antyodaya Gap index
d) Squared Poverty gap
Answer: C

Question. Amartya Sen, noted Nobel Laureate, has developed an index known as_______. ( Fill up the blank with correct answer)
Answer: Sen Index

Question. Whether the following statement is true or false? When the number of poor is estimated as the proportion of people below the poverty line, it is known as Head Count Ratio‘.
Answer: True

Question. Who estimates poverty related data in the country?
Answer: National Sample Survey Organisation ( NSSO)

Question. Which of the following is not among the government‘s approach to reduce poverty in India?
a) Growth approach
b) Poverty alleviation programmes
c) Awareness campaign
d) Provide minimum basic amenities
Answer: C

Question. ___________________ Yojna has now been restructured as National Rural Livelihood Mission (NRLM). ( Fill up the blank with correct answer)
Answer: Swarnajayanti Gram Swarozgar Yojana (SGSY)

Question. Whether the following statement is true or false? ―Under Jan Dhan Yojna each bank account holder is also entitled to Rs. 1 lakh accident insurance and Rs. 30,000 life insurance cover‖.
Answer: True

Question. Why was Ramdas Korwa of Rachketha village not overjoyed by constructing road worth Rs l7.44 lakh?
a) There was already a pacca road
b) He required water in his well and some land development
c) He required a house and a swimming pool
d) He was from a rich family
Answer: B

Question. By which year the government was aiming to meet the Millennium Development Goals including the rate of global poverty?
a) 2017
b) 2013
c) 2015
d) 2009
Answer: C

Question. When we compare people on the basis of different regions, time period or people, the concept is called as _____________poverty. ( Absolute /Relative) (Fill up the blank with correct option)
Answer: Relative poverty

Question. ______________ is a programme under which elderly people who do not have anyone to take care of them are given pension to sustain themselves. ( Fill up the blank with correct answer)
Answer: National Social Assistance Programme

Question. ________ is a cut-off point on the line of distribution which divides the population into the poor and non-poor.
a) Poverty cut-off
b) Poverty
c) Poverty line
d) Poverty distribution
Answer: Poverty line

Question. The planning commission has defined the poverty line on the basis of the recommended nutritional necessity of ______ calories per person per day for urban areas.
a) 3000
b) 2500
c) 3100
d) 2100
Answer: 2100

Question. Which of the following states has less poverty?
a) Bihar
b) Odisha
c) Uttar Pradesh
d) Kerala
Answer: Kerala

Question. ________________is the sum of individual poverty. ( Fill up the blank with correct answer)
Answer: Aggregate poverty

Question. Valmiki Ambedkar Awas Yojana was launched in the year,
a) 2001
b) 1999
c) 2005
d) 2011
Answer: 2001

Question. Identify the correct sequence of alternatives given in column II by matching them with respective terms in column I
Column I                            Column II
a) Jail cost of living       i) Chronic Poor
b) Poverty line              ii) Dadabhai Naoroji
c ) churning poor          iii) Transient poor
d) Usually poor             iv) Planning Commission
Choose the correct option:
a) i, iii, ii, iv
b) ii, iv, iii, i
c) ii, iv, i, iii
d) iv, ii, iii, iv
Answer: B

Question. Why calorie -based norm is not adequate to identify the poor?
Answer: i) Ignores other aspects except food: Calorie-based norm for identifying poor focuses on a single aspect, i.e. consumption of food. While it can be an ideal tool to identify all the poor as a group, it cannot reveal other aspects of poverty.
ii) Difficult to calculate: It is not very easy to estimate the calorie intake of the people. Exact calculation of calorie in the food items is not possible.
iii) Problem of identifying poor: It cannot help in identifying those poor who really need assistance. The people who are calorie conscious, they take less calorie, it doesn‘t mean that they are poor.

Question. What is meant by ‗Food for Work‘ programme?
Answer: Food for work programme was launched on November 14, 2004 in 150 most backward districts of the country. The objective of the programme was to provide additional resources available under Sampoorna Grameen RojgarYojna. This was 100% centrally funded programme. Now this programme has been subsumed in the MGNREGA from Feb....... 2, 2006. ‗Food for Work‘ programme involves those programmes which provide predefined minimum wages to the poor in lieu of some work. MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) is an example of ‗Food for Work‘ programme.

Question. Why are employment generation programmes important in poverty alleviation in India?
Answer: Employment generation programmes assist the poor people in becoming self-employed. It is assumed that once a person becomes employed, he can develop a regular source of income and may not need assistance in the long run. While financial help can have short term benefits, employment generation programmes can have long term benefits for poverty alleviation.

Question. How can creation of income earning assets address the problem of poverty?
Answer: Once a person is able to create income earning assets, he would get a regular source of income. A regular source of income; no matter how small; can help a person in at least fulfilling the basic needs. Thus, creation of income earning assets addresses the problem of poverty to some extent. Like; Cow or buffalo are helpful in earning money.

Question. The three dimensional attack on poverty adopted by the government has not succeeded in poverty alleviation in India. Comment.
Answer: All the poverty alleviation programmes have definitely succeeded in addressing the issue. This is verified by the low level of poor people in villages as compared to the national average. But there are many factors which hamper in all out success of such programmes.
i) Corruption: Corruption among the government and bank officials are main reasons for the relatively less success of these programmes. The money granted does not reach the desired section of population. Corrupt officials use their authority in providing benefits to their relatives, it hinders the success of programmes.
ii) Improper use of resources: Growth rate of the country is not as per expectation. Potential production capacity is not used up to the maximum. Resource allocation is unable to cope with the scale of poverty in India.
iii) Lack of political willingness: Experts believe that low motivation, lack of training and non- involvement of local institutions is another major factor. Last but not the least, the

Question. What programmes has the government adopted to help the elderly people and poor and destitute women?
Answer: Government has initiated National Social Assistance Programme to help special groups of poor. Under this programme, elderly people who do not have anybody to take care are given financial assistance in the form of monthly pension. Destitute women and widows are also given similar assistance.

Question. Is there any relationship between unemployment and poverty? Explain.
Answer: Unemployment is a major reason of poverty. If a person is unemployed or suffers from seasonal of hidden unemployment, he may not earn enough meet even the basic needs. An unemployed person often falls in the vicious cycle of penury and debt trap and may not be able to come out of it.

Question. Suppose you are from a poor family and you wish to get help from the government to set up a petty shop. Under which scheme will you apply for assistance and why?
Answer: I will apply under the PMRY (Pradhan Mantri RojgarYojna) because this programme provides bank loans for starting a business.

Question. Illustrate the difference between rural and urban poverty. Is it correct to say that poverty has shifted from rural to urban areas? Use the trends in poverty ratio to support your answer.
Answer: There are differences between rural and urban poverty. If we consider the calorie-based criteria then calorie requirement for rural person has been kept at a higher level than that for urban person.
- In 1973-74, more than 80% of poor in India lived in villages. This means that more than three-fourth
of the poor in India still reside in villages.
- At present, percentage of poor in rural areas is less than that in urban areas. However in the 1990s,
the absolute number of poor in rural areas had declined whereas the number of their urban counterparts increased marginally. The poverty ratio declined continuously for both urban and rural areas.
- The ratio is declining much slower than the absolute number of poor in the country. You will also notice that the gap between the absolute number of poor in rural and urban areas got reduced whereas in the case of ratio the gap has remained the same until 1999-2000 and has widened in 2011-12
- Large scale migration from villages to cities; in search of alternate employment is cited as the main reason for this trend. Hence, this can said that poverty has shifted from rural to urban areas.

Question. Suppose you are a resident of a village, suggest a few measures to tackle the problem of poverty.
Answer: The best way to tackle the problem of poverty in a village is to generate employment avenues. People should be trained in vocational skills so that they can start some manufacturing units. For this, the banks should provide financial assistance. Those engaged in manufacturing should also be taught the importance of quality. These steps can help in reducing poverty in rural areas.

Question. Explain the causes of poverty.
Answer: Poverty is explained as an inability to fulfilling the meagre necessities like – house, food, clothing, health facilities and health etc., Extreme poverty refers to the complete lack of the means of needs to be met, basic food, shelter and clothing. However, there are many causes of poverty like –
- Increasing population
- Lack of economic growth
- Inequality
- Lack of education & awareness
- Shortage of capital
- Ineffective implementation of poverty alleviation programme
- Lack of skills and entrepreneurial development

Question. Explain Self-employment.
Answer: Being self-employed is a circumstance in which an individual works for himself instead of working for or under an employer that pays as a wage or a salary. The chief cause of underemployment and unemployment prevailing in the developing nations namely, India. There are several types of selfemployment business like – the partnership, limited ability, companies, sole proprietorship etc.,

Very Short Answer Questions - 1 Mark Each

1. Why do we need to invest in human capital? [1 Mark]

Answer:
We need to invest in human capital to increase the productivity of labour, acquire specialized skills, and promote technological innovation and economic growth.

Teacher's Note:
a) Human capital refers to the stock of skill, ability, expertise, education, and knowledge embodied in people.
b) Investment in human capital transforms ordinary individuals into productive human resources.

2. What are the indicators of educational achievements in a country? [1 Mark]

Answer:
The main indicators of educational achievements in a country are the adult literacy rate, primary education completion rate, and youth literacy rate.

Teacher's Note:
a) These indicators measure the stock and quality of education within a population.
b) They help policymakers assess the effectiveness of educational planning.

3. How is 'On the job training' a source of Human capital formation? [1 Mark]

Answer:
On the job training enhances the skill and efficiency of workers, which increases their productivity and future earning capacity.

Teacher's Note:
a) It can be provided in the form of rigorous in-house training or under the guidance of experienced workers.
b) Employers incur expenditure on it because the enhanced productivity outweighs the cost.

4. What do the differences in male and female literacy rates indicate? [1 Mark]

Answer:
Differences in male and female literacy rates indicate gender discrimination, social backwardness, and lack of equal educational opportunities for women in society.

Teacher's Note:
a) Lower female literacy slows down overall human development and family health standards.
b) Bridging this gap is critical for equitable economic growth.

Short Answer Questions - 3 Marks Each

1. Literacy rates in India have increased but so has the absolute number of illiterates. Why? [3 Marks]

Answer:
1. The population growth rate in India has consistently outpaced the expansion of basic education infrastructure.
2. Although the percentage of literate people has gone up, the absolute base population has grown much larger.
3. Consequently, the absolute number of illiterate individuals continues to remain high despite rising literacy rates.

Teacher's Note:
a) This paradox highlights the challenge of population explosion alongside educational progress.
b) Students must distinguish between percentage rates and absolute numbers.
c) Universal primary education policies must account for high demographic growth.

2. Is expenditure on migration a source of human capital formation? Give reasons to support your answers. [3 Marks]

Answer:
1. Yes, expenditure on migration is a source of human capital formation as people migrate in search of better employment opportunities that match their skills.
2. Unemployed people migrate from rural areas to urban areas where job opportunities are available.
3. Technically qualified persons like engineers and doctors migrate to other countries for higher salaries, which enhances their earnings and contributes to capital flow and skill utilization.

Teacher's Note:
a) Migration involves costs like transportation and higher living expenses in urban areas.
b) The financial returns from migration in terms of higher incomes outweigh these initial costs.
c) It optimizes resource allocation in the labor market.

3. Distinguish between 'Human Capital' and 'Human Development'. [3 Marks]

Answer:
1. Human capital treats human beings as a means to an end, where investment in education and health increases labor productivity.
2. Human development considers human beings as an end in themselves, focusing on well-being, freedom, and health as valuable in their own right.
3. Human capital is narrow, focusing mainly on economic output, whereas human development is a broader concept encompassing all-round human well-being.

Teacher's Note:
a) Education and health are the core components of both concepts.
b) In human capital, productivity is the primary metric, while in human development, quality of life is key.
c) Both concepts are complementary in economic planning.

4. Explain the role of Education in the Economic development of a nation. [3 Marks]

Answer:
1. Education produces skilled and efficient labor force that accelerates technological adoption and productivity.
2. It promotes mental horizons, modern outlook, and scientific temperament among citizens, reducing social evils.
3. It raises the income-earning capacity of people, reduces poverty, and ensures equitable distribution of growth benefits.

Teacher's Note:
a) Investment in education creates positive externalities across generations.
b) Focus on primary education lays the foundation for higher technical education.
c) It is considered the most crucial determinant of a nation's long-term growth.

Long Answer Questions - 6 Marks Each

1. How is government expenditure on education expressed? Which in your opinion is a better measure? [6 Marks]

Answer:
1. Government expenditure on education is usually expressed in two ways: as a percentage of total government expenditure and as a percentage of Gross Domestic Product (GDP).
2. Expressing it as a percentage of total government expenditure indicates the importance the government attaches to education relative to other public sectors.
3. Expressing it as a percentage of GDP shows how much of the country's total income is being channeled into educational development.
4. As a better measure, expressing expenditure as a percentage of GDP is preferred because it reflects the actual national commitment to education irrespective of the size of the total government budget.
5. It allows for meaningful international comparisons across countries with different GDP sizes and tax structures.
6. Both measures together provide a comprehensive picture of public investment in human capital formation.

Teacher's Note:
a) Public expenditure on education has two long-term targets recommended by education commissions in India.
b) Students must explain both expressions clearly before justifying the better measure.
c) The Kothari Commission recommended spending 6 percent of GDP on education.
d) Adequate public spending corrects market failures in the educational sector.

2. How does investment in human capital contribute to growth? [6 Marks]

Answer:
1. Investment in human capital increases labor productivity as educated and healthy workers perform tasks more efficiently than unskilled workers.
2. It fosters innovations and technological advancements, allowing a nation to adopt advanced production techniques easily.
3. It enhances the ability of workers to absorb new ideas and adapt to changing market demands, ensuring dynamic economic flexibility.
4. Higher levels of education and healthcare lead to better health outcomes, reducing working days lost due to illness and increasing overall workforce participation.
5. It promotes a competitive environment and entrepreneurial spirit, which directly translates into higher national output and economic growth.
6. Empirical studies show that a large proportion of growth in developed nations is attributed to the quality of human capital.

Teacher's Note:
a) Physical capital and human capital are mutually interdependent in driving economic growth.
b) Human capital converts raw physical assets into productive output.
c) Mentioning empirical linkages adds depth to the long answer.
d) Long-term growth is unsustainable without simultaneous investment in people.

3. Identify how Human Development Index is calculated. [6 Marks]

Answer:
1. The Human Development Index (HDI) is a composite index prepared by the United Nations Development Programme (UNDP).
2. It measures achievements in three basic dimensions of human development: a long and healthy life, access to knowledge, and a decent standard of living.
3. Health is measured by life expectancy at birth.
4. Education is measured by expected years of schooling for children of school-entering age and mean years of schooling for adults aged 25 years and older.
5. Standard of living is measured by Gross National Income (GNI) per capita adjusted for purchasing power parity (PPP) in US dollars.
6. Minimum and maximum values are set for each dimension, and the index is calculated as a geometric mean of normalized indices for each of the three dimensions, resulting in a score between 0 and 1.

Teacher's Note:
a) HDI shifts the focus of development economics from pure income growth to human well-being.
b) Students must list all three dimensions and their exact indicators.
c) The methodology was revised in recent years to use geometric means instead of arithmetic means.
d) Countries are ranked globally based on their final HDI score.

4. Is India going to be a knowledge based economy in the near future? Discuss [6 Marks]

Answer:
1. India possesses a massive demographic dividend with a large young population that can be trained as a knowledge workforce.
2. The rapid expansion of IT, software services, and digital infrastructure positions India favorably on the global technology map.
3. However, large-scale illiteracy, poor quality of primary education, and regional disparities pose major structural roadblocks.
4. Expenditure on research and development (R&D) in India remains relatively low compared to global knowledge economies.
5. To transform into a knowledge-based economy, India must bridge the digital divide and upgrade educational standards from primary to higher levels.
6. Therefore, while the potential is enormous, achieving a true knowledge-based economy requires aggressive policy reforms and higher investment in human capital.

Teacher's Note:
a) A balanced view acknowledging both potential and challenges is essential for this answer.
b) Highlight the role of software, biotechnology, and scientific research.
c) Quality deficits in rural education must be explicitly addressed.
d) Conclude with policy imperatives for the near future.

NCERT text book questions - 3 Marks each

1. Why do we observe regional differences in educational attainment in India? [3 Marks]

Answer:
1. Uneven allocation of government funds and educational infrastructure across different states leads to regional disparities.
2. Varying levels of economic development and per capita income among states affect families' ability to afford private education.
3. Social discrimination, cultural barriers, and political will vary widely across regions, impacting female and marginalized group literacy.

Teacher's Note:
a) States like Kerala have high literacy due to historical state support, while others lag behind.
b) Public policy must target backward districts to bridge the regional gap.
c) Educational disparities reinforce economic inequality across states.

2. Mention two government organisations each that regulate the health and education sectors. [3 Marks]

Answer:
1. For the education sector, the two main regulatory bodies are the University Grants Commission (UGC) and the National Council of Educational Research and Training (NCERT) or Central Board of Secondary Education (CBSE).
2. For the health sector, the two main regulatory bodies are the Indian Council of Medical Research (ICMR) and the Medical Council of India (now replaced by the National Medical Commission - NMC).

Teacher's Note:
a) Regulatory bodies ensure minimum standards of quality and service delivery.
b) Mentioning standard apex bodies fulfills the requirement of the question.
c) These institutions coordinate policy between central and state governments.

3. 'There is a downward trend in inequality world-wide with a rise in the average education levels'. Comment. [3 Marks]

Answer:
1. Education empowers individuals, increases their earning potential, and helps lift households out of poverty.
2. When average education levels rise across the population, the wage gap between skilled and unskilled labor tends to narrow over time.
3. Therefore, widespread access to education promotes inclusive growth, thereby reducing economic inequality globally.

Teacher's Note:
a) Education acts as a great social equalizer.
b) Universal access ensures that the benefits of growth are shared broadly.
c) Structural policies must ensure education reaches marginalized sections to reduce inequality effectively.

4. Argue in favour of the need for different forms of government intervention in education and health sectors. [3 Marks]

Answer:
1. Education and health generate immense positive externalities that private markets fail to price adequately.
2. Private providers often exploit consumers through exorbitant fees and substandard care in the absence of regulation.
3. Government intervention ensures equitable access to basic education and healthcare for poor and marginalized sections who cannot afford market prices.

Teacher's Note:
a) Merit goods require public provision to prevent market failure.
b) Health and education are fundamental human rights essential for human capital formation.
c) State intervention bridges the equity gap in developing economies.

5. In your view, is it essential for the government to regulate the fee structure in education and health care institutions? If so, why? [3 Marks]

Answer:
1. Yes, it is essential for the government to regulate fee structures because education and health are basic necessities, not luxury commodities.
2. Unregulated private institutions often engage in profiteering and commercialization, making quality services unaffordable for the masses.
3. Regulation ensures that institutions maintain fair pricing, preventing discrimination and ensuring affordable access for weaker sections of society.

Teacher's Note:
a) Commercialization of health and education leads to widening income inequality.
b) Government oversight balances institutional autonomy with social welfare.
c) Price ceilings or fee caps protect vulnerable consumers from market exploitation.