Here we are providing Class 12 Economics Important Extra Questions and Answers Chapter 4 Poverty. Economics Class 12 Important Questions are the best resource for students which helps in class 12 board exams.
Class 12 Economics Chapter 4 Important Extra Questions Poverty
Poverty Important Extra Questions Very Short Answer Type
What do you mean by poverty?
Poverty is the inability to secure the minimum consumption requirements for life, health and efficiency.
What proportion of the world’s poor live in India?
One-fifth of the world’s poor live in India.
How many children under the age of five die annually in India according to UNICEF?
About 2.3 million children under the age of five die India per annum according to UNICEF.
Name the two key features of poorest households.
The two key features of poorest households are hunger and starvation.
What are the factors responsible alarming malnutrition among the poor?
Ill health, disability and serious illness are the factors responsible for alarmingly high malnutrition among the poor.
Define poverty line.
Poverty line estimates the minimum level of income that is considered appropriate to secure basic necessities of life.
What was the percentage of population below poverty line in 2011-12 in India?
22 percent of India’s population lived below poverty line in 2011 -12.
Name the two types of poverty.
The two types are absolute poverty and relative poverty.
Define absolute poverty.
Absolute poverty determines the minimum physical quantities of requirement for a subsistence level, with the help of poverty line.
What is relative poverty?
Relative poverty refers to lack of resources in relation to different classes regions and countries.
State the minimum calorie requirement (per day) of a person in rural area and a person in urban area
The minimum calorie intake (per day) for a rural person is estimated at 2,400 calories while that for a person in urban area is 2,100 for a person.
How is the extent of poverty worked out in India?
The extent of poverty in India is worked out with the help of “Head Count Ratio”.
Define Head Count Ratio.
Head Count Ratio is the proportion of persons living below the poverty line.
Name some factors, other than income and expenditure, which are associated with poverty.
Some factors, other than income and expenditure, which are associated with poverty, include accessibility to basic education, health care, drinking water and sanitation
Name the state in India which had the highest poverty in 2011-2012.
In 2011 -2012, Chhattisgarh had the highest poverty in India.
List any two causes of poverty in India.
Causes of poverty in India are:
(i) Lack of quality education
(ii) No or limited access to health care
(iii) Unequal distribution of income and wealth
Why are casual labourers among the most vulnerable group in society?
Casual labourers are among the most vulnerable in society as they suffer lack of job security, assets, skills, opportunities and have no surplus to sustain them.
Give two examples of self-employment programmes initiated by the government to alleviate poverty.
Two self-employment programmes initiated by the government include are Rural Employment Generation Programme (REGP) and Prime Minister’s Rozgar Yojana (PMRY).
Name the three major programmes that aim at improving the food and nutritional status of the poor.
Three major programmes that aim at improving the food and nutritional status of the poor are:
(i) Public Distribution System
(ii) Integrated Child Development Scheme
(iii) Mid-day Meal
Poverty Important Extra Questions Short Answer Type
Who are the poor?
We can see poor residing in our localities both in rural and urban areas. Some of the most vulnerable groups are urban casual labourers, rural agricultural labourers, scheduled castes and scheduled tribes. These people possess very few assets and live in very miserable conditions. They live in kutcha houses made of baked mud and root grass.
They neither have any land to cultivate nor can they afford even two meals a day. Hence, they are malnourished and physically weak. Moreover, they are deprived of decent economic opportunities, which could raise their standard of living and lifestyle. They are illiterate, jobless as well as voiceless and powerless. Better-off people often exploit them.
What are the problems faced by the poor?
Following are the problems faced by the poor:
- They suffer from chronic indebtedness borrow from money lenders who charge high rates of interest, which leads them into poverty.
- They are not able to negotiate with employers for legal wages and are exploited.
- They do not have access to electricity and safe drinking water.
- The primary cooking fuel is firewood and cow dung cake.
- There exists extreme gender inequality in the participation of employment, education and decision-making within the family.
- Women in poor households receive less care on their way to motherhood and hence, their children are less likely to survive or be born healthy.
List the initiatives undertaken in post-independent lndia to work out a mechanism to identify the number of poor.
The initiatives undertaken in post-independent India to work out a mechanism to identify the number of poor are:
(i) A Study Group was formed by the Planning Commission in 1962.
(ii) Task Force on Projections of Minimum Needs and Effective Consumption Demand was formed in 1979.
(iii) ‘Expert Groups’ were also constituted for the same purpose in the years 1989 and 2005.
Differentiate between absolute and relative poverty.
The table below shows the points of difference between absolute and relative poverty:
|Absolute Poverty||Relative Poverty|
|1. It takes into account the minimum physical quantities of national requirement for a subsistence level.||It takes into account relative levels of income of the population.|
|2. Poverty is measured in monetary terms.||Poverty is measured with respect to various classes, regions and countries.|
|3. It shows only the number of poor in the country determined on the basis of defined poverty line.||It shows the extent of inequality and proportion of people living below the poverty line.|
Why is the calorie requirements in rural areas are considered to be higher than urban areas?
The consumption levels in the rural and urban areas are quite different. The calorie intake differs depending upon the age group, eating habits, type of work, climate and consumption level.
The accepted average calorie requirement in India is 2400 calories per person per day in rural areas and 2100 calories per person per day in urban areas. The calorie requirements in rural areas are considered to be higher than urban areas because people living in rural areas engage themselves in more physical work.
Explain how poverty is categorised, with the help of a diagram.
Poverty can be categorised as:
(i) Chronic Poor: This group includes those people who are always poor and those who are usually poor but who may sometimes have relatively more money.
(ii) Transient Poor: It covers churning poor and occasionally poor people. Churning poor are those people who move in and out of poverty regularly. Occasionally poor are those people who are rich most of the time but may sometimes suffer bad luck are said to be occasionally poor.
(iii) Non-poor: Non-poor are those who are never poor.
Write a short note on the changes in the trends of poverty ratio and the number of poor during 1973-2012.
During 1973 -74 and 2011 -12, the poverty ratio has declined continuously for Doth urban and rural areas. There has also been a decline in the absolute number of poor. However, the ratio is declining much slower than the absolute number of poor in the country. While the gap between the absolute number of poor in rural and urban areas got reduced, the gap between rural and urban poverty ratio has remained the same until 1999-2000. The gap between ratios has in fact widened in 2004- 10.
Give a brief description of inter-state disparity in terms of poverty in India.
The proportion of poor people is not the same in every state. The state level poverty has witnessed a significant decline compared to the levels of early seventies. However, the rate of success of reducing poverty varies from state to state. According to recent estimates, many states and union territories have poverty ratio less than the national average. On the other hand, poverty is still a serious issue in Odisha, Bihar, Madhya, Pradesh and Uttar Pradesh.
What impact did the British rule had on the Indian economy?
The British rule had a substantial negative impact on the Indian economy and standard of living of the people.
- There was a sharp increase rural tax, which made merchants and moneylenders exploit the borrowers.
- India began to export food grains under the British, which lead to death of 26 million people in famines between 1875 and 1900.
- The British rule impoverished millions of people in India.
What makes farmers commit suicide?
Landless farmers are poor and they do not have sufficient money to buy modern equipment for producing crops. In order to adopt developed techniques of production in agriculture, they take loans from moneylenders, who charge them very high rate of interest.
However, if the crop fails due to drought or other natural calamities, it causes distress among the farmers. They commit suicide due to their inability to repay the loans that they have taken for cultivation.
Discuss the objective of growth-oriented approach of poverty alleviation.
The growth-oriented approach is based on the idea that the effects of economic growth, rapid increase in national income and per capita income would automatically spread to all sections of society which will improve the condition of poor sections of the country. Major focus on ‘trickle down’ process was laid down in the 1950s and early 1960s by the planning process.
It was believed that rapid industrial development and agricultural transformation through ‘green revolution’ in selected regions of the country would benefit the underdeveloped regions of the country and more backward sections of the society as well.
Write a short note on MNREGA.
Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) is an important step towards the realisation of the right to work. Under MNREGA, all those who are able to, and are in need of work at minimum wages, are guaranteed 100 days of employment in a year by the government
If the government fails in its duty to provide employment, it will give unemployment allowances to the people. Moreover, the programme is expected to enhance people’s livelihoods on a sustained basis, by developing the economic and social infrastructure in rural areas. In 2012-13, 4.4 crore households have been provided employment under MNREGA.
Which approach has been adopted to improve the standard of living of the poor?
The government adopted an approach to address poverty by providing minimum basic amenities to the people. The objective was to improve the people’s standard of living through public expenditure on social consumption needs such as provision of food grains at subsidised rates, education, health, water supply and sanitation.
This approach also included programmes which are expected to create employment opportunities and bring about improvements in health and education.
“Without the active participation of the poor, successful implementation of any programme is not possible.” Elaborate.
The poor can contribute significantly towards the eradication of poverty and hence, growth by their active involvement in the growth process. This is possible through a process of social mobilisation of poor people, encouraging them to participate and get them empowered. These steps will also help create employment opportunities thereby increasing the levels of income, development of skill, health and literacy.
Poverty Important Extra Questions Long Answer Type
Discuss per capita expenditure method of determining poverty line? What are its limitations?
Per capita expenditure method determines poverty by the monetary value of the minimum calorie intake. The minimum calorie intake was estimated at 2,400 calories for a rural person and 2,100 for a person in the urban area.
On the basis of this, the poverty line was defined worth ₹ 816 as consumption per person a month for rural areas and ₹ 1,000 for urban areas for the year 201 1-12. Limitations of Per Capita Expenditure Method of Determining Poverty Line
(i) It groups all the poor together, without differentiating between the very poor and the other types of poor.
(ii) It takes into account only expenditure on food and a few select items. With this mechanism, it becomes difficult to identify who among the poor need the most help.
(iii) Various factors such as accessibility to basic education, health care, drinking water and sanitation are ignored while developing poverty line.
(iv) Social factors such as illiteracy, ill health, lack of access to resources, discrimination or lack of civil and political freedoms trigger and perpetuate poverty. These are also not taken into consideration while determining poverty line.
Critically examine the trends in rural urban poverty on the basis of the table and diagram given below
The table shows that in 1972-73, 55% of total population was below poverty line out of which the percentages of rural and urban poverty were 56% and 49% respectively. In 1999-2000, percentage of poverty of the total population was 26.1 % out of which 27.1 % of rural population and 23.6% of urban population were below poverty line.
While in 2011 -12, the percentage of poverty was 21.9% out of which 25.7% of the rural population and 13.7% of the urban population were below poverty line. According to the diagram, there has been a continuous decline in poverty ratio both in rural and urban areas after 1990s. It can be seen that the gap between absolute number of poor in rural and urban areas did not narrow down until the early 1990s.
What are the causes of poverty in India?
The main causes of poverty in India are the following:
Underdeveloped Nature of the Economy: Indian economy is an underdeveloped economy. Its per capita income is low. Thus, its underdeveloped nature is closely associated with poverty, Rapid Growth of Population; Rapid growth of population in already overpopulated countries I like India is one of the main causes of poverty. With the increase in population, the national income increases, however, the per capita income remains more or less the same.
Unstable and Casual Nature of Employment’ The poor people lack basic literacy and skills. : As a result, they have very limited economic opportunities and face unstable employment.
A large number of rural poor migrate to urban areas in search of employment and livelihood. The industries in cities, however, are not able to absorb all these people. The urban poor are either I unemployed or intermittently employed as casual labourers.
(iv) Predominance of Agriculture: Agriculture is the principal means of livelihood and land is the primary assets of rural people. Productivity of land is an important determinant of material well being. But the productivity of land in India is very low and thus, people remain struck in poverty.
(v) Failure of Land Reforms: Since independence, the government attempted to take lands from those who are having large amounts of land and allot to those who do not have any land but work on lands as wage labourers. This policy of land reforms was successful only to a limited extent.
This has left the large section of agricultural workers, scheduled castes and scheduled tribes as wage labourers. As a result, this group of population remained unable to possess assets or skill and remained struck in poverty.
(vi) indebtedness of the Farmers: Due to the adoption of developed techniques of production in agriculture, farmers had taken loans. In recent times, many farmers committed suicide due to their inability to pay back the loans. This indebtedness makes the people unable to raise their income and thus, remain struck in poverty.
(vii) Increase in Prices: The continuous and steep price rise adds to the miseries of poor. Although, it benefits a few people in the society (businessmen), the persons in lower income group find it difficult to meet even their minimum needs.
(viii) Unequal Distribution of Income and Wealth: Unequal distribution of income and wealth has also led to persistence of poverty in India. This has generated two distinct groups of ‘have and have not’ in society. One group comprises those who possess the means of production and earn their income while the other group consists of those who rely on their labour power for subsistence. The gap between these groups has widened over the years thereby worsening the position of the poor.
Suggest measures to remove poverty in India.
The problem of poverty is a big danger to the unity of India. Although the government has adopted many programmes, covering different aspects together, following measures can also be undertaken to remove poverty:
(i) Population Control: Growing population is a major cause of poverty in India. Hence, it is necessary to control it. Family planning programme should be implemented effectively.
(ii) Creation of More Employment Opportunities: Though it has been stated in our Constitution that the government would provide employment opportunities to all, but unemployment is still a big problem in India. It is also responsible for poverty. Hence, it is essential to promote employment through intensive skill development technology.
(iii) Increase in Production: Industrial and agricultural production should be increased to remove poverty. Present capacity should be utilised fully and new techniques should be adopted. Proper coordination should be there between large scale and small scale industries. Superior seeds, manures, fertilisers and modern methods of production should be adopted for agricultural development. Necessary irrigation facilities should be made.
(iv) Check on Price Rise: Price rise is also responsible for poverty in India. It decidedly goes against the interests of the poor. Thus, price rise must be checked through proper fiscal and monetary policies and other measures.
(v) More Emphasis on Small, Rural and Cottage Industries: Small scale and cottage industries have not developed fully in India, The government should adopt effective methods to expand small and cottage industries, which will increase the self-employment opportunities for the poor.
(vi) Stepping-up Capital Formation: Low rate of capital formation is a major hindrance in the way of fast economic development. Capital formation rate, therefore, must be increased. As it basically depends on the saving rate, every possible effort should be made to increase savings and their mobilisation.
(vii) Equal Distribution of Income and Wealth: One cause of inequitable distribution of income and wealth is that economic and employment opportunities are not equal for all. This inequality should be reduced. The poor should be given priority in employment opportunities. Tax system should be developed in such a way that income and wealth does not get concentrated in a few hands.
(viii) Effective Implementation of Programmes Designed to Attack Poverty: Undoubtedly, the government has implemented many programmes to attack poverty. It is unfortunate that these programmes have not been proved helpful to the poor because of ineffective implementation. Many social and political factors are responsible for it. Therefore, effective implementation of these programmes is necessary if poverty is to be reduced.
Explain the self-employment and wage generation approach of the government for poverty alleviation.
Government’s approach of self-employment and wage generation was initiated from Third Five Year Plan (1961 -66) and has been enlarged successfully since then. The following programmes have been initiated by the government from time to time under this approach:
(i) Food for work Programme (FWP): FWP was launched in the 1970s for the upliftment of the poor. Under this programme, foodgrains are distributed against the wage work.
(ii) Prime Minister’s RozgarYojana (PMRY): This programme has been implemented by the Khadi and Village Industries Commission, which aims at creating self-employment opportunities in rural areas and small towns. One can get financial assistance with bank loans to set up small enterprises under this programme.
Under PMRY, the educated unemployed from low-income families in both rural and urban areas can get financial help to set up any type of industry which generates employment.
(iii) Swarna Jayanti Shahari RozgarYojana (SJSRY): It aims at creating employment opportunities, both self-employment and wage employment in urban areas. Individuals were given financial assistance under self-employment programmes.
(iv) Swarnajayanthi Gram SwarozgarYojana: Sawarnajayanthi Gram Swarozgar Yojana was launched in April 1999 and is the only self-employment programme currently being implemented. It aims at promoting micro enterprises and to bring the assisted poor families (Swarozgaris) above the poverty line by organising them into Self-Help Groups through the process of social mobilisation, training and capacity building and provision of income generating assets through a mix of Bank Credit and Government subsidy.
(v) Sampoorna Grameen RozgarYojana (SGRY): SGRY was launched in September 2001. The schemes of Jawahar Gram Samridhi Yojana and Employment Assurance Scheme have been fully integrated with SGRY.
The objective of the scheme is to provide additional wage employment along with food security, creation of durable community, social and economic assets and infrastructure development in the rural areas. The scheme envisages generation of 100 man days of employment in a year.
(vi) National Food for Work Programme (NFWP): National Food for Work Programme was launched on November 14, 2004 in 150 most backward districts of the India. It is implemented as a 100 per cent centrally sponsored scheme and the foodgrains are provided to States free of cost. The objective of the programme was to intensify the generation of supplementary wage employment.
Discuss the various programmes introduced under the government’s minimum basic needs providing approach for poverty alleviation.
Programmes under minimum basic needs providing approach are expected to supplement the consumption of the poor, improve health and education and create employment opportunities. Government has adopted the following programmes under this approach:
(i) Pradhan Mantri Gram SadakYojana (PMGSY): This programme aims at building all-weather roads by 2007 in all villages having population of 500 persons.
(ii) Pradhan Mantri GramodayaYojana (PMGY): PMGY was launched in 2000-01 in all the states and union territories in order to achieve the objective of sustainable human development at the village level. The PMGY envisages allocation of Additional Central Assistance to the States and Union Territories for selected basic minimum services in order to focus on certain priority areas of the government.
Initially, PMGY had five components viz. primary health, primary education, rural shelter, rural drinking water and nutrition. Rural electrification has been added as an additional component from 2001 -02.
(iii) Valmiki Ambedkar AwasYojana (Vambay): This programme was launched in December 2001 to facilitate the construction and up-gradation of dwelling units for the slum dwellers. It also aims to provide a healthy and enabling urban environment through community toilets under ‘Nirmal Bharat Abhiyan’ a component of the scheme.
(iv) National Social Assistance Programme (Nsap): The government initiated National Social Assistance Programme under which, homeless elderly people are given pension to sustain themselves. The programme also covers poor and destitute women.
Poverty Important Extra Questions HOTS
Discuss the impact of globalisation on small land owning farmers.
Globalisation related shocks and lack of perceived income earning opportunities are descending many small land owning farmers into poverty. If the households are able to sell assets, or borrow, or generate income from alternative employment opportunities, the impact of globalisation shocks may
be transient However, if the household does not have any assets to sell or have no access to credit, the shocks may push households below the poverty line. The distressed households.usually find suicides as a solution to such crisis.
In India a majority of population is lying below poverty line due to inequality of income and wealth. What can government do to solve this problem?
The government can solve the problem of inequality of income and wealth through progressive taxation. Under progressive taxation, burden of the tax falls more on the rich and less on the poor. The rate of tax increases as the income increases. Thus, progressive tax is equitable.