Poverty Lines and Poverty Ratio

Description: Poverty Lines and Poverty Ratio
Number of Questions: 15
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Tags: indian economics poverty and income distribution
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What is the poverty line?

  1. The minimum income required to maintain a basic standard of living.

  2. The minimum income required to purchase a basket of basic goods and services.

  3. The minimum income required to meet basic needs such as food, clothing, and shelter.

  4. All of the above.


Correct Option: D
Explanation:

The poverty line is a measure of the minimum income required to maintain a basic standard of living. It is typically defined as the income level at which a household is considered to be poor. The poverty line can be based on a variety of factors, such as the cost of basic goods and services, the cost of housing, and the cost of transportation.

What is the poverty ratio?

  1. The ratio of the poverty line to the median income.

  2. The ratio of the poverty line to the mean income.

  3. The ratio of the poverty line to the per capita income.

  4. None of the above.


Correct Option: A
Explanation:

The poverty ratio is a measure of the extent of poverty in a population. It is calculated by dividing the poverty line by the median income. The poverty ratio can be used to compare the poverty rates of different countries or regions.

What are the different types of poverty lines?

  1. Absolute poverty line

  2. Relative poverty line

  3. Subjective poverty line

  4. All of the above


Correct Option:
Explanation:

There are three main types of poverty lines: absolute poverty line, relative poverty line, and subjective poverty line. The absolute poverty line is based on the cost of basic needs such as food, clothing, and shelter. The relative poverty line is based on the income of the poorest households in a society. The subjective poverty line is based on the perceptions of individuals about what constitutes poverty.

What are the limitations of poverty lines?

  1. They are based on arbitrary definitions of poverty.

  2. They do not take into account the distribution of income within a population.

  3. They do not take into account the cost of living in different areas.

  4. All of the above.


Correct Option: D
Explanation:

Poverty lines have a number of limitations. They are based on arbitrary definitions of poverty, they do not take into account the distribution of income within a population, and they do not take into account the cost of living in different areas.

How can poverty lines be used to measure poverty?

  1. To estimate the number of people living in poverty.

  2. To compare the poverty rates of different countries or regions.

  3. To track changes in poverty over time.

  4. All of the above.


Correct Option: D
Explanation:

Poverty lines can be used to measure poverty in a number of ways. They can be used to estimate the number of people living in poverty, to compare the poverty rates of different countries or regions, and to track changes in poverty over time.

What are some of the factors that contribute to poverty?

  1. Unemployment

  2. Low wages

  3. Lack of education

  4. Lack of access to healthcare

  5. All of the above.


Correct Option: E
Explanation:

There are a number of factors that can contribute to poverty, including unemployment, low wages, lack of education, and lack of access to healthcare.

What are some of the consequences of poverty?

  1. Poor health

  2. Low educational attainment

  3. Crime

  4. Social isolation

  5. All of the above.


Correct Option: E
Explanation:

Poverty can have a number of negative consequences, including poor health, low educational attainment, crime, and social isolation.

What are some of the policies that can be used to reduce poverty?

  1. Increasing the minimum wage

  2. Expanding access to education and healthcare

  3. Providing job training and placement assistance

  4. All of the above.


Correct Option: D
Explanation:

There are a number of policies that can be used to reduce poverty, including increasing the minimum wage, expanding access to education and healthcare, and providing job training and placement assistance.

What is the role of economic growth in reducing poverty?

  1. Economic growth can lead to job creation and higher wages.

  2. Economic growth can lead to increased government revenue, which can be used to fund social programs.

  3. Economic growth can lead to increased investment in education and healthcare.

  4. All of the above.


Correct Option: D
Explanation:

Economic growth can play a role in reducing poverty by leading to job creation and higher wages, increased government revenue, and increased investment in education and healthcare.

What is the role of social programs in reducing poverty?

  1. Social programs can provide financial assistance to poor families.

  2. Social programs can provide access to education and healthcare.

  3. Social programs can provide job training and placement assistance.

  4. All of the above.


Correct Option: D
Explanation:

Social programs can play a role in reducing poverty by providing financial assistance to poor families, providing access to education and healthcare, and providing job training and placement assistance.

What is the role of international development assistance in reducing poverty?

  1. International development assistance can provide financial assistance to poor countries.

  2. International development assistance can provide technical assistance to poor countries.

  3. International development assistance can help to promote economic growth in poor countries.

  4. All of the above.


Correct Option: D
Explanation:

International development assistance can play a role in reducing poverty by providing financial assistance to poor countries, providing technical assistance to poor countries, and helping to promote economic growth in poor countries.

What is the role of non-governmental organizations (NGOs) in reducing poverty?

  1. NGOs can provide financial assistance to poor families.

  2. NGOs can provide access to education and healthcare.

  3. NGOs can provide job training and placement assistance.

  4. All of the above.


Correct Option: D
Explanation:

NGOs can play a role in reducing poverty by providing financial assistance to poor families, providing access to education and healthcare, and providing job training and placement assistance.

What is the role of individuals in reducing poverty?

  1. Individuals can donate money to charities that help poor people.

  2. Individuals can volunteer their time to help poor people.

  3. Individuals can advocate for policies that help poor people.

  4. All of the above.


Correct Option: D
Explanation:

Individuals can play a role in reducing poverty by donating money to charities that help poor people, volunteering their time to help poor people, and advocating for policies that help poor people.

What is the goal of poverty reduction?

  1. To eliminate poverty.

  2. To reduce the number of people living in poverty.

  3. To improve the living standards of poor people.

  4. All of the above.


Correct Option: D
Explanation:

The goal of poverty reduction is to eliminate poverty, reduce the number of people living in poverty, and improve the living standards of poor people.

What are some of the challenges to poverty reduction?

  1. Economic inequality

  2. Political instability

  3. Climate change

  4. All of the above.


Correct Option: D
Explanation:

There are a number of challenges to poverty reduction, including economic inequality, political instability, and climate change.

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