Poverty and Income Distribution

Description: This quiz covers the topic of Poverty and Income Distribution in Indian Economics.
Number of Questions: 15
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Tags: poverty income distribution economic demography indian economics
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What is the official poverty line in India, as defined by the Planning Commission?

  1. Rs. 32 per capita per day in rural areas and Rs. 47 per capita per day in urban areas (2011-12 prices)

  2. Rs. 27 per capita per day in rural areas and Rs. 33 per capita per day in urban areas (2011-12 prices)

  3. Rs. 40 per capita per day in rural areas and Rs. 55 per capita per day in urban areas (2011-12 prices)

  4. Rs. 50 per capita per day in rural areas and Rs. 65 per capita per day in urban areas (2011-12 prices)


Correct Option: A
Explanation:

The official poverty line in India is determined by the Planning Commission, which uses a mixed approach of income and consumption expenditure to define poverty. The current poverty line is based on the recommendations of the Rangarajan Committee, which submitted its report in 2014.

Which state in India has the highest poverty rate?

  1. Bihar

  2. Jharkhand

  3. Chhattisgarh

  4. Madhya Pradesh


Correct Option: A
Explanation:

According to the latest official data from the Planning Commission, Bihar has the highest poverty rate in India, with 34.7% of its population living below the poverty line. Jharkhand, Chhattisgarh, and Madhya Pradesh also have high poverty rates, with 32.4%, 30.1%, and 29.6% of their populations living below the poverty line, respectively.

Which state in India has the lowest poverty rate?

  1. Goa

  2. Himachal Pradesh

  3. Kerala

  4. Sikkim


Correct Option: A
Explanation:

Goa has the lowest poverty rate in India, with only 5.8% of its population living below the poverty line. Himachal Pradesh, Kerala, and Sikkim also have low poverty rates, with 8.6%, 9.7%, and 10.1% of their populations living below the poverty line, respectively.

What is the Gini coefficient, and how is it used to measure income inequality?

  1. The Gini coefficient is a measure of statistical dispersion intended to represent the income or wealth distribution of a nation's residents.

  2. The Gini coefficient is a measure of the extent to which the distribution of income or wealth among individuals or households within a country deviates from a perfectly equal distribution.

  3. The Gini coefficient is a measure of the extent to which the distribution of income or wealth among individuals or households within a country deviates from a perfectly unequal distribution.

  4. The Gini coefficient is a measure of the extent to which the distribution of income or wealth among individuals or households within a country deviates from a perfectly random distribution.


Correct Option: B
Explanation:

The Gini coefficient is a measure of income inequality that ranges from 0 to 1. A Gini coefficient of 0 represents perfect equality, where everyone has the same income, while a Gini coefficient of 1 represents perfect inequality, where one person has all the income and everyone else has none. The higher the Gini coefficient, the greater the income inequality.

What is the Gini coefficient of India?

  1. 0.38

  2. 0.42

  3. 0.46

  4. 0.50


Correct Option: A
Explanation:

The Gini coefficient of India is 0.38, which is considered to be moderate income inequality. This means that there is a significant gap between the rich and the poor in India, but it is not as extreme as in some other countries.

What are some of the main causes of poverty in India?

  1. Lack of access to education and healthcare

  2. Discrimination based on caste, gender, and religion

  3. Corruption and lack of transparency in government

  4. All of the above


Correct Option: D
Explanation:

Poverty in India is a complex issue with many contributing factors. Some of the main causes include lack of access to education and healthcare, discrimination based on caste, gender, and religion, and corruption and lack of transparency in government.

What are some of the main government programs aimed at reducing poverty in India?

  1. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

  2. The Pradhan Mantri Jan Dhan Yojana (PMJDY)

  3. The National Food Security Act (NFSA)

  4. All of the above


Correct Option: D
Explanation:

The Indian government has implemented a number of programs aimed at reducing poverty, including the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), which provides employment to rural households, the Pradhan Mantri Jan Dhan Yojana (PMJDY), which provides banking services to the poor, and the National Food Security Act (NFSA), which provides subsidized food to the poor.

What are some of the challenges in reducing poverty in India?

  1. Rapid population growth

  2. Climate change

  3. Globalization

  4. All of the above


Correct Option: D
Explanation:

Reducing poverty in India is a challenging task due to a number of factors, including rapid population growth, climate change, and globalization.

What is the relationship between poverty and economic growth?

  1. Poverty and economic growth are positively correlated.

  2. Poverty and economic growth are negatively correlated.

  3. There is no relationship between poverty and economic growth.

  4. The relationship between poverty and economic growth is complex and depends on a number of factors.


Correct Option: D
Explanation:

The relationship between poverty and economic growth is complex and depends on a number of factors, including the type of economic growth, the distribution of the benefits of growth, and the government's policies and programs to address poverty.

What are some of the key policy recommendations for reducing poverty in India?

  1. Investing in education and healthcare

  2. Promoting inclusive economic growth

  3. Addressing discrimination and inequality

  4. All of the above


Correct Option: D
Explanation:

Reducing poverty in India requires a comprehensive approach that includes investing in education and healthcare, promoting inclusive economic growth, and addressing discrimination and inequality.

What is the role of international cooperation in reducing poverty in India?

  1. International cooperation can provide financial assistance to India.

  2. International cooperation can provide technical assistance to India.

  3. International cooperation can help to promote trade and investment in India.

  4. All of the above


Correct Option: D
Explanation:

International cooperation can play a significant role in reducing poverty in India by providing financial assistance, technical assistance, and helping to promote trade and investment.

What are some of the key challenges in achieving the Sustainable Development Goals (SDGs) related to poverty in India?

  1. Rapid population growth

  2. Climate change

  3. Globalization

  4. All of the above


Correct Option: D
Explanation:

Achieving the SDGs related to poverty in India is a challenging task due to a number of factors, including rapid population growth, climate change, and globalization.

What are some of the key policy recommendations for achieving the SDGs related to poverty in India?

  1. Investing in education and healthcare

  2. Promoting inclusive economic growth

  3. Addressing discrimination and inequality

  4. All of the above


Correct Option: D
Explanation:

Achieving the SDGs related to poverty in India requires a comprehensive approach that includes investing in education and healthcare, promoting inclusive economic growth, and addressing discrimination and inequality.

What is the role of civil society organizations in reducing poverty in India?

  1. Civil society organizations can provide direct assistance to the poor.

  2. Civil society organizations can advocate for policies that reduce poverty.

  3. Civil society organizations can help to raise awareness of poverty issues.

  4. All of the above


Correct Option: D
Explanation:

Civil society organizations can play a significant role in reducing poverty in India by providing direct assistance to the poor, advocating for policies that reduce poverty, and helping to raise awareness of poverty issues.

What is the role of the private sector in reducing poverty in India?

  1. The private sector can create jobs.

  2. The private sector can invest in infrastructure.

  3. The private sector can provide goods and services to the poor.

  4. All of the above


Correct Option: D
Explanation:

The private sector can play a significant role in reducing poverty in India by creating jobs, investing in infrastructure, and providing goods and services to the poor.

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