Q1.
What is poverty?
Answer: Poverty is a situation where an individual is unable to
procure the basic necessities of life, such as food, clothing, shelter,
education and health services.
Q2.
What is a poverty line?
Answer: The poverty line creates a minimum point in the
distribution line and divides a country's population into 'poor' and 'non-poor'.
Q3.
What is the minimum calorie consumption set for the poverty line in India (as
per the Planning Commission)?
Answer: According to the definition based on calories, the minimum
calorie consumption should be 2400 calories in rural areas and 2100
calories in urban areas.
Q4.
Why is the minimum calorie requirement higher in rural areas than in urban
areas?
Answer: People in rural areas require more calories because they
have to do more physical labour than people in urban areas.
Q5.
Briefly explain the term "vicious cycle of poverty."
Answer: The poor people are caught in the vicious cycle of poverty,
which means the uneven distribution of wealth and income pushes them further
into the depths of poverty.
Q6.
What percentage of India's population was below the poverty line in 2011-12,
according to the Rangarajan Committee?
Answer: According to the Rangarajan Committee Report, a total of 29.5%
of the total population was below the poverty line during 2011-12.
Q7.
Mention the three main causes of poverty.
Answer: The causes of poverty can be basically divided into three
parts:
- Historical: During the British rule, Indian resources were taken
abroad, weakening the base of the Indian economy. This problem was
explained by Dadabhai Naoroji in his book 'Poverty and UnBritish Rule
in India".
- Economic: Reasons include lack of land ownership, seasonal
unemployment in agriculture, low wages, and a shortage of capital for
investment due to low saving capacity caused by population increase.
- Social: The prevalent caste system restricts a sizeable
portion of the population from the benefits of socio-economic development,
making the problem complex.
Q8.
Explain the causes of poverty in rural and urban India.
Answer:
- Causes of Rural Poverty: The reasons include the absence of land ownership,
seasonal unemployment in the agriculture sector, lack of employment
opportunities outside agriculture, the presence of uneducated and
unskilled labour, limited agricultural production, and a low rate of wages.
- Causes of Urban Poverty: The reasons include the endless flow of labour from
the rural areas to the cities, lack of housing, lack of drinking water, a
polluted environment, and the creation of slum areas.
Q9.
What is meant by population explosion?
Answer: A Population explosion means the excessive growth of the population.
Q10.
What was the population of India according to the 2011 census?
Answer: According to the 2011 census, the population of India is 121
crores.
Q11.
What is India's position in the world in terms of population size?
Answer: From the standpoint of the size of population, India
occupies the second position in the world.
Q12.
What is the density of population in India (according to the 2011 census)?
Answer: The density of population in India is 382 people per
square kilometre.
Q13.
What is the sex ratio in India (according to the 2011 census)?
Answer: The sex ratio (the number of females per 1000 males) in
India is 940.
Q14.
Mention the important reasons for the growth of the population in India and Assam. Answer: The important reasons for the growth of the population are:
- High birth rate.
- Illiteracy.
- Poverty.
- Lack of social consciousness.
- Lack of population education.
- For Assam specifically, the influx of population from other states and
countries, especially the unrestricted flow from the neighbouring states
of Bangladesh and Nepal, has aggravated the problem.
Q15.
How is unemployment defined in Economics?
Answer: In economics, only those people are termed as unemployed
who have the ability and desire to work but do not get any opportunity
to do so.
Q16.
Name the two main types of unemployment.
Answer: Unemployment is generally of two types: Rural
unemployment and Urban unemployment.
Q17.
Define seasonal unemployment.
Answer: Seasonal unemployed people are unemployed during a season
but are employed for the rest of the year. For example, people involved in
agricultural activities.
Q18.
Define disguised (hidden) unemployment.
Answer: Disguised or hidden unemployed are those who look as if
they are employed but they do not have any role in the total production.
Q19. Differentiate between Industrial unemployment and Educated unemployment.
Answer:
- Industrial unemployed are people who do not find employment in the
industries.
- Educated unemployed are people who do not find job opportunities despite
having the required educational qualifications.
Q20.
How is the Worker-Population Ratio calculated?
Answer: The Worker-Population Ratio can be found by dividing
the total workforce by the total population and multiplying it by
100.
Q21.
How is the rate of unemployment in India calculated?
Answer: The rate of unemployment in India is calculated by the
National Sample Survey Organisation (NSSO) using three concepts: Usual Status,
Current Daily Status, and Current Weekly Status.
Q22.
Discuss the concept of 'qualitative standards of employment.'
Answer:
- The qualitative standard of
employment is considered high when the worker is provided with
social security facilities like insurance cover, provident fund, and free
medical facilities.
- The qualitative standard is
always high in the organised sector (where the number of workers
must be 10 or more).
- The qualitative standard is absent
in the unorganised sector (where the number of workers is less than
10) because social security facilities are not available there.
Q23.
Explain the main causes of unemployment.
Answer: The following causes are worth mentioning:
- High rate of population growth: The growth rate of employment opportunities has not
been able to keep pace with the rate of increase in population, making the
unemployment problem alarming.
- Jobless growth: The gap between the rate of growth of national income
and the rate of employment is increasing. This situation is called jobless
growth.
- Stagnant agricultural
development: For a country like India, the
rate of growth of agriculture is not up to expectations, resulting in
unemployment among the people engaged in agriculture.
- Slow rate of industrialisation: Industrial unemployment occurs because the rate of
industrialisation is not up to expectations.
- Faulty educational system: The prevailing educational system is unable to make
the population fit for employment, and the lack of vocational and
technical education makes them unfit for self-employment, leading to
educational unemployment.
Q24.
What is inflation in Economics?
Answer: In economics, a continuous rise in the general price
level is known as inflation.
Q25.
What happens to the value of money during inflation?
Answer: During inflation, there is a rise in prices and a decline
in the value of money.
Q26.
Name the two main causes of inflation.
Answer: The two main causes of inflation are Demand-pull and
Cost-push.
Q27.
What is Demand-pull inflation?
Answer: Demand-pull inflation occurs when there is an increase in
the demand for commodities by consumers, but no corresponding increase in
supply. It is described as a situation of "too much money chasing too
few goods".
Q28.
What are the three main reasons for Cost-push inflation?
Answer: Cost-push inflation occurs due to a rise in the cost of
production, mainly due to:
- Rise in wages.
- Rise in profits.
- The burden of taxes on
commodities.
Q29.
Differentiate between Open and Suppressed inflation.
Answer:
- Open inflation: This is a situation where there is no control
over the rise in prices and there is an unrestricted rise in prices.
- Suppressed inflation occurs when the government controls the rise in prices through methods such as the public distribution system or
price fixation. This keeps the price level lower and decreases the rate of increase of prices.
Q30.
State the definition of poverty given in a broad sense.
Answer: In a broad sense, poverty is a situation where an
individual is unable to procure the basic necessities of life, such as food,
clothing, shelter, education and health services.
Q31.
Define an 'unemployed' person according to the economic concept.
Answer: In economics, only those people are termed as unemployed
who have the ability and desire to work but do not get any opportunity
to do so.
Q32.
What is 'Jobless growth'?
Answer: Jobless growth is a situation where the gap between the
rate of growth of national income and the rate of employment is increasing.
This means that the economy is growing, but it is not creating enough jobs.
Q33. What is the difference between the 'Organised Sector' and the 'Unorganised Sector' based on worker numbers?
Answer:
- The Organised Sector
must have a number of workers that is 10 or more.
- The Unorganised Sector
(or unregulated sector) has a number of workers that is less than 10.
Q34.
What are the three main reasons for the occurrence of Cost-push inflation?
Answer: Cost-push inflation occurs mainly due to three reasons:
- Rise in wages.
- Rise in profits.
- The burden of taxes on
commodities.
Q35.
What is the key characteristic of the Indian economy regarding poverty?
Answer: Widespread and severe poverty is one of the main
characteristics of the Indian economy.
Q36. Who was the head of the first expert committee that methodically studied the problem of poverty in India, and when did his report find its findings?
Answer:
- The study was made under the
expert guidance of Professor Tendulkar.
- The findings were made for the
period 2009-10.
Q37. Who was the head of the second expert committee on poverty, and when was its report presented?
Answer:
- The head of the second expert
committee was Professor Rangarajan.
- The Rangarajan Committee Report
was presented in 2014.
Q38. According to the 2011 census, what are the most densely populated state and the most sparsely populated states in India?
Answer:
- The most densely populated
state is West Bengal (1029 people per sq km).
- The most sparsely populated
state is Arunachal Pradesh (17 people per sq km).
Q39. According to the 2011 census, which state has the highest sex ratio and which has the lowest sex ratio in India?
Answer:
- The sex ratio is highest in Kerala
(1084 females per 1000 males).
- The sex ratio is lowest in Haryana
(877 females per 1000 males).
Q40. What was the decadal growth rate of population in India and Assam, according to the 2011 census?
Answer:
- The decadal growth of
population in India was 17.64 %.
- The decadal growth of
population in Assam was 15.35 %.
Q41. During which Five-Year Plan was the eradication of poverty adopted as a basic objective, and what program was prepared during this time?
Answer:
- The eradication of poverty was
adopted as a basic objective during the Fifth Five-Year Plan.
- The Minimum Needs Programme
(provision of food, clothing, shelter, etc.) was prepared during the
period of this plan.
Q42.
How did Dadabhai Naoroji explain the historical cause of poverty in India?
Answer: Dadabhai Naoroji explained this problem in his book 'Poverty
and UnBritish Rule in India'. He stated that during the British rule, the
Indian resources were taken abroad, which weakened the base of the Indian
economy.
Q43.
Which organisation collects data for determining the poverty line?
Answer: The National Sample Survey Office (earlier Organisation)
collects data regarding the monthly per capita consumption, and this data is
used by the Planning Commission to determine the poverty line.
Q44.
According to economist Coulburn, what is inflation?
Answer: According to Coulburn, "Inflation is a situation of too
much money chasing too few goods".
Q45. Explain the concept of the 'vicious cycle of poverty' and how economic imbalance contributes to it.
Answer: The uneven
distribution of wealth and income leads to economic imbalance in a country
Q46. How is the problem of increasing population related to the problems of poverty and unemployment?
Answer:
1.
Relation
to Poverty: The aggregate increase in population leads to a decrease in the
capacity to save
2. Relation to Unemployment: The high rate of
population growth is constantly adding to the problem of unemployment
Q47. Distinguish between Seasonal Unemployment and Disguised Unemployment (Hidden Unemployment).
Answer:
· Seasonal Unemployment: These are people who are
unemployed during a particular season but are employed for the rest of the year
· Disguised Unemployment: These are people who
look as if they are employed but do not contribute to the total production
Q48. Explain the difference between Demand-pull and Cost-push inflation.
Answer:
· Demand-pull inflation occurs when there is an
increase in the demand for commodities by consumers, but the supply does not
increase accordingly
·
Cost-push inflation occurs due to a rise in
the cost of production
Q49. Why is the sex ratio in Assam considered an encouraging trend compared to the national average?
Answer: The sex ratio
in India is 940 (females per 1000 males)
Q50. List the qualitative standards that make employment high quality.
Answer: The qualitative
standard of employment is high when the worker is provided with
·
Insurance cover
·
Provident fund
·
Free medical facilities
Q51. What were the basic objectives of the Minimum Needs Programme prepared during the Fifth Five-Year Plan?
Answer: The Minimum
Needs Programme was prepared during the Fifth Five-Year Plan
MCQs
Q1. In a broad sense, poverty is a
situation where an individual cannot procure the basic necessities of life,
which include:
A. Food, clothing, and shelter only
B. Food, clothing, shelter, and
luxury goods
C. Food, clothing, shelter,
education, and health services
D. Only food and shelter
Answer: C
Q2. The poverty line of a country
creates a minimum point in the distribution line and divides the population
into:
A. Literate and Illiterate
B. Rich and Middle-class
C. Poor and Non-poor
D. Employed and Unemployed
Answer: C
Q3. According to the Planning
Commission's calorie definition, the minimum required calorie consumption per
day for a person in rural areas is:
B. 2400 calories
C. 2000 calories
D. 2250 calories
Answer: B
Q4. The minimum required calorie
consumption per day for a person in urban areas is:
A. 2400 calories
B. 2100 calories
C. 2000 calories
D. 1800 calories
Answer: B
Q5. The calorie requirement is
higher in rural areas than in urban areas, mainly because people in rural areas
generally do:
A. More skilled work
B. More physical labour
C. Less mental work
D. More educational activities
Answer: B
Q6. The situation where the uneven
distribution of wealth and income pushes poor people further into deprivation
is called the:
B. Vicious cycle of poverty
C. Debt trap
D. Open Inflation
Answer: B
Q7. Which economist explained the
historical cause of poverty in his book 'Poverty and UnBritish Rule in
India'?
A. Amartya Sen
B. Dadabhai Naoroji
C. M.G. Ranade
D. V.K.R.V. Rao
Answer: B
Q8. The historical cause of poverty
in India refers to:
A. The caste system
B. The Green Revolution
C. The removal of Indian resources
during British rule
D. High birth rate
Answer: C
Q9. Which of the following is an
economic cause of rural poverty?
A. Caste system
B. Seasonal unemployment in
agriculture
C. Illiteracy
D. Population explosion
Answer: B
Q10. Which of the following is a key
cause of urban poverty?
A. Land ownership issues
B. Seasonal employment
C. Endless flow of labour from rural
areas to cities
D. Low agricultural production
Answer: C
Q11. The problem of slum areas in
cities is a direct result of:
A. Rural development
B. Urban poverty
D. Cost-push inflation
Answer: B
Q12. The social cause of poverty
mentioned in the text is:
A. Low wages
B. The prevalent caste system
C. Lack of capital
D. Lack of technical education
Answer: B
Q13. Who was the head of the Expert
Committee that first methodically studied the problem of poverty in India for
the period 2009-10?
A. Professor Rangarajan
B. Professor Tendulkar
C. Dr. Manmohan Singh
D. V.K.R.V. Rao
Answer: B
Q14. The Rangarajan Committee
presented its report on poverty in which year?
A. 2009
B. 2011
C. 2014
D. 2018
Answer: C
Q15. According to the Rangarajan
Committee Report (2014), what percentage of India's population was below the
poverty line in 2011-12?
A. 21.9%
B. 29.5%
C. 32.7%
D. 40.2%
Answer: B
Q16. The data regarding monthly per
capita consumption, which is used to determine the poverty line, is collected
by:
A. Reserve Bank of India (RBI)
B. National Sample Survey Office
(NSSO)
C. Ministry of Finance
D. Census of India
Answer: B
Q17. During which Five-Year Plan was
the eradication of poverty adopted as a basic objective?
A. First Five-Year Plan
B. Third Five-Year Plan
C. Fifth Five-Year Plan
D. Seventh Five-Year Plan
Answer: C
Q18. The Minimum Needs Programme was
prepared during the period of which plan?
A. First Five-Year Plan
B. Fifth Five-Year Plan
C. Tenth Five-Year Plan
D. Annual Plans (1990-92)
Answer: B
Q19. Which definition of India's
poverty line is the most widely accepted?
A. Income-based definition
B. Expenditure-based definition
C. Definition based on calories
D. Definition based on education
level
Answer: C
Q20. What is the main cause of low
investment and low saving capacity among the poor people?
A. Government policy
B. Population increase
C. Foreign competition
D. Natural calamities
Answer: B
Q21. What is the meaning of
"Population Explosion"?
A. Slow growth of population
B. Excessive growth of population
C. Decrease in population
D. Migration of population
Answer: B
Q22. What was the population of
India according to the 2011 census?
A. 102 crores
B. 121 crores
C. 135 crores
D. 98 crores
Answer: B
Q23. In terms of population size,
India occupies which position in the world?
A. First
B. Second
C. Third
D. Fourth
Answer: B
Q24. According to the 2011 census,
what is the density of population in India?
A. 410 people per sq km
B. 382 people per sq km
C. 325 people per sq km
D. 450 people per sq km
Answer: B
Q25. What is the definition of Sex
Ratio?
A. Number of males per 1000 females
B. Number of females per 100 males
C. Number of females per 1000 males
D. Total population divided by total
females
Answer: C
Q26. What was the sex ratio in India
according to the 2011 census?
A. 930
B. 940
C. 960
D. 972
Answer: B
Q27. The most densely populated
state in India, according to the 2011 census, is:
A. Bihar
B. Uttar Pradesh
C. West Bengal
D. Kerala
Answer: C
Q28. What was the population density
of West Bengal in 2011?
A. 860 per sq km
B. 1029 per sq km
C. 950 per sq km
D. 780 per sq km
Answer: B
Q29. The most sparsely (least)
populated state in India, with only 17 people per sq km in 2011, is:
A. Mizoram
B. Sikkim
C. Arunachal Pradesh
D. Nagaland
Answer: C
Q30. Which state recorded the
highest sex ratio (1084) in the 2011 census?
A. Tamil Nadu
B. Andhra Pradesh
C. Kerala
D. Maharashtra
Answer: C
Q31. Which state recorded the lowest
sex ratio (877) in the 2011 census?
A. Punjab
B. Rajasthan
C. Haryana
D. Gujarat
Answer: C
Q32. What was the decadal growth
rate of population in India during 2001-2011?
A. 21.54 %
B. 17.64 %
C. 19.34 %
D. 15.64 %
Answer: B
Q33. What was the decadal growth
rate of population in Assam during 2001-2011?
A. 17.64 %
B. 20.35 %
C. 15.35 %
D. 14.95 %
Answer: C
Q34. The sex ratio of Assam (954) is
considered an encouraging trend because:
A. It is lower than the national
average
B. It is higher than the national
average (940)
C. It is exactly equal to the
national average
D. It has declined since 2001
Answer: B
Q35. The population growth in Assam
is aggravated by:
A. High literacy rate
B. Outflow of people
C. Influx of population from
neighbouring states and countries
D. High per capita income
Answer: C
Q36. In economics, a person is
termed unemployed if they have the ability and desire to work but:
A. Do not have an educational degree
B. Do not get any opportunity to
work
C. Only work for a few hours a day
D. Are not willing to work at all
Answer: B
Q37. Which of the following is NOT
one of the two main types of unemployment mentioned in the chapter?
B. Urban unemployment
C. Frictional unemployment
D. None of the above (Both A and B
are main types)
Answer: C
Q38. When people are employed only
for a part of the year (a season) and remain unemployed for the rest of the
year, it is called:
A. Frictional unemployment
B. Disguised unemployment
C. Seasonal unemployment
D. Educated unemployment
Answer: C
Q39. When people appear to be
employed, but their role in the total production is actually zero (i.e.,
marginal productivity is zero), it is known as:
A. Industrial unemployment
B. Educated unemployment
C. Disguised (Hidden) unemployment
D. Cyclical unemployment
Answer: C
Q40. People who do not find
employment in the factories and production units are categorized as:
A. Seasonal unemployed
B. Educated unemployed
C. Industrial unemployed
D. Disguised unemployed
Answer: C
Q41. People who cannot find job
opportunities despite having the required educational qualifications are
called:
A. Industrial unemployed
B. Educated unemployed
C. Underemployed
D. Technological unemployed
Answer: B
Q42. Which of the following is
calculated by dividing the total workforce by the total population and
multiplying by 100?
A. Unemployment Rate
B. Poverty Line
C. Worker-Population Ratio
D. Sex Ratio
Answer: C
Q43. The rate of unemployment in
India is calculated by:
A. Census of India
B. Reserve Bank of India
C. National Sample Survey
Organisation (NSSO)
D. Planning Commission
Answer: C
Q44. The NSSO calculates the
unemployment rate using which of the following concepts?
A. Usual Status
B. Current Daily Status
C. Current Weekly Status
D. All of the above
Answer: D
Q45. The qualitative standard of
employment is considered high when the worker is provided with:
A. Low wages
B. Lack of medical facilities
C. Social security benefits
(Insurance, PF, medical)
D. Short-term contracts
Answer: C
Q46. The Organised Sector is defined
as a sector having a number of workers that is:
A. Less than 10
B. Exactly 5
C. 10 or more
D. More than 50
Answer: C
Q47. Social security facilities like
Provident Fund and medical insurance are generally absent in which sector?
A. Organised Sector
C. Public Sector
D. Government Sector
Answer: B
Q48. The problem where the growth
rate of national income is higher than the growth rate of employment is called:
A. Inflation
B. Jobless growth
C. Stagflation
D. Economic slowdown
Answer: B
Q49. Which of the following is a
major cause of unemployment in India according to the text?
A. High rate of population growth
B. Sufficient rate of
industrialisation
C. High growth rate of agriculture
D. Excellent vocational education
system
Answer: A
Q50. The lack of vocational and
technical education in the educational system leads to:
A. Disguised unemployment
B. Self-employment opportunities
C. Educated and self-employment
unemployment
D. Seasonal unemployment
Answer: C
Q51. What is the economic definition
of Inflation?
A. A temporary fall in price level
B. A continuous rise in the general
price level
C. A fall in the value of money only
D. A rise in the stock market index
Answer: B
Q52. During the period of inflation,
what happens to the value of money?
A. Increases
B. Remains constant
C. Declines/Decreases
D. Fluctuates rapidly
Answer: C
Q53. The two main causes of
inflation are:
A. Frictional and Seasonal
B. Rural and Urban
C. Demand-pull and Cost-push
D. Open and Suppressed
Answer: C
Q54. The situation described as
"too much money chasing too few goods" is characteristic of:
A. Cost-push inflation
B. Suppressed inflation
C. Demand-pull inflation
D. Open inflation
Answer: C
Q55. Demand-pull inflation occurs
when there is a large increase in the demand for goods, but:
A. The cost of production falls
B. The supply of commodities does
not increase accordingly
C. The government fixes the prices
D. The value of money increases
Answer: B
Q56. What is the primary reason for
Cost-push inflation?
A. Increase in consumer demand
B. Rise in the cost of production
C. Decrease in tax burden
D. High rate of population growth
Answer: B
Q57. Which of the following is a
reason for Cost-push inflation?
A. Rise in wages
B. Rise in profits
C. The burden of taxes on
commodities
D. All of the above
Answer: D
Q58. When there is no control over
the rise in prices and the increase is unrestricted, the situation is known as:
A. Suppressed inflation
B. Cost-push inflation
C. Open inflation
D. Demand-pull inflation
Answer: C
Q59. The type of inflation where the
government controls the rise in prices using methods like the public
distribution system or price fixation is called:
A. Open inflation
B. Cost-push inflation
C. Demand-pull inflation
D. Suppressed inflation
Answer: D
Q60. Suppressed inflation helps to:
A. Increase the rate of rise in
prices
B. Keep the price level below the
level of open inflation
C. Increase the demand for luxury
goods
D. Cause widespread unemployment
Answer: B
Q61. The minimum calorie requirement
for an urban person is lower than a rural person because:
A. Urban food is healthier
B. Urban people generally do less
physical labour
C. Rural people consume more protein
D. Urban people have higher incomes
Answer: B
Q62. Who collects the data for
'Monthly Per Capita Consumption Expenditure' used for the poverty line?
A. Planning Commission
B. National Sample Survey Office
(NSSO)
C. Ministry of Health
D. Census of India
Answer: B
Q63. The phenomenon of high
population growth leading to a decrease in savings capacity and less capital for
investment is a cause of:
A. Disguised unemployment
B. Open inflation
C. Economic poverty
D. Seasonal employment
Answer: C
Q64. According to the 2011 census,
the most sparsely populated state is...
A. West Bengal
B. Kerala
C. Arunachal Pradesh
D. Haryana
Answer: C
Q65. If the Worker-Population Ratio
is high, it indicates:
A. A high proportion of unemployed
people
B. A high proportion of people are
working
C. A high sex ratio
D. A high density of population
Answer: B
Q66. The concept of unemployment where
the person has the ability and desire to work is a condition for:
A. Industrial unemployment only
B. Rural unemployment only
C. The definition of unemployment in
economics
D. Disguised unemployment
Answer: C
Q67. Which of the following is NOT a
reason for Cost-push inflation?
A. Rise in wages
B. Rise in profits
C. Rise in government taxes
D. Rise in consumer demand (leading
to shortages)
Answer: D
Q68. The primary problem faced by
people in the Unorganised Sector is the absence of:
A. High salaries
B. Social security facilities
C. Basic education
D. Physical work
Answer: B
Q69. The historical reason for
poverty in India can be traced back to the weakening of the Indian economy
during:
A. The Five Year Plans
B. The British rule
C. The Mughal period
D. The 1991 economic reforms
Answer: B
Q70. If a five-acre farm needs 5
workers, but 8 workers are employed, the extra 3 workers are examples of:
A. Seasonal unemployment
B. Educated unemployment
C. Disguised unemployment
D. Industrial unemployment
Answer: C
Q71. A continuous rise in prices
will lead to a decrease in the general purchasing power of money, which is the
definition of:
A. Deflation
B. Inflation
C. Stagflation
D. Recession
Answer: B
Q72. The problem of Jobless Growth
refers to the widening gap between the growth rates of:
A. Population and Literacy
B. Rural and Urban income
C. National Income and Employment
D. Exports and Imports
Answer: C
Q73. The decadal growth rate of
population in India (17.64%) is ________ the decadal growth rate of Assam (15.35%).
A. Lower than
B. Higher than
C. Equal to
D. Not comparable to
Answer: B
Q74. Which of the following is a
cause of unemployment linked to the agricultural sector?
A. Industrial automation
B. Seasonal nature of farming
C. Lack of engineering colleges
D. High wages in cities
Answer: B
Q75. The Planning Commission's
calorie definition of the poverty line is the most widely accepted because it
addresses the most basic requirement of:
A. Shelter
B. Health
C. Food
D. Education
Answer: C
Q76. The Unorganised Sector is a
unit where the number of workers is:
A. Exactly 10
B. More than 10
C. Less than 10
D. 10 to 50
Answer: C
Q77. According to the 2011 Census,
the lowest sex ratio in India was found in the state of:
A. Kerala
B. West Bengal
C. Haryana
D. Assam
Answer: C
Q78. The unchecked rise in prices
due to lack of government intervention is characteristic of:
A. Suppressed Inflation
B. Open Inflation
C. Demand Inflation
D. Cost Inflation
Answer: B
Q79. Which of the following concepts
is NOT used by the NSSO to calculate the unemployment rate?
A. Usual Status
B. Current Monthly Status
C. Current Daily Status
D. Current Weekly Status
Answer: B
Q80. The Minimum Needs Programme was
aimed at providing:
A. Education to all
B. Food, clothing, shelter, etc.
C. Medical facilities only
D. Jobs to all unemployed
Answer: B
Q81. The high rate of population
growth is mentioned as a major cause for:
A. Unemployment
B. Poverty
C. Low savings capacity
D. All of the above
Answer: D
Q82. According to the Rangarajan
Committee, what was the percentage of the population below the poverty line in
2011-12?
A. 21.9%
B. 29.5%
C. 32.7%
D. 38.2%
Answer: B
Q83. Which state in India had the
highest population density in 2011?
A. Arunachal Pradesh
B. Uttar Pradesh
C. West Bengal
D. Kerala
Answer: C
Q84. The rise in prices due to
"too much money chasing too few goods" is a type of:
A. Cost-push inflation
B. Suppressed inflation
C. Demand-pull inflation
D. Open inflation
Answer: C
Q85. The sex ratio of Assam (954) is
higher than the national average of:
A. 877
B. 940
C. 1084
D. 954 (Trick)
Answer: B
Q86. What is the approximate
population of India in crores, as per the 2011 Census?
A. 131
B. 121
C. 111
D. 141
Answer: B
Q87. The term used to describe
people who cannot find jobs in factories and industrial units is:
A. Educated unemployment
B. Disguised unemployment
C. Industrial unemployment
D. Seasonal unemployment
Answer: C
Q88. Which of the following is a
social cause of poverty?
A. Low wages
B. Seasonal farming
C. The caste system
D. Lack of industries
Answer: C
Q89. In which year did the Tendulkar
Committee give its findings for the study of poverty?
A. 2014
B. 2009-10
C. 2001
D. 2011-12
Answer: B
Q90. When the value of the Rupee
declines, it is a direct consequence of:
A. Deflation
B. Inflation
C. Low population growth
D. High literacy rate
Answer: B
Q91. The unrestricted flow of
population from other states and countries (like Bangladesh and Nepal) is a
specific cause of population growth in:
A. Maharashtra
B. Assam
C. Kerala
D. Haryana
Answer: B
Q92. What are the three main factors
causing Cost-push inflation? (Select the one that is NOT a factor)
A. Rise in wages
B. Increase in consumer demand
C. Rise in profits
D. Burden of taxes
Answer: B
Q93. The problem of lack of land
ownership is a major cause of:
A. Urban poverty
B. Rural poverty
C. Industrial unemployment
D. Educated unemployment
Answer: B
Q94. A situation where the
government uses the public distribution system to control prices is called:
A. Open inflation
B. Demand-pull inflation
C. Suppressed inflation
D. Cost-push inflation
Answer: C
Q95. The density of population in
Arunachal Pradesh is:
A. 382 per sq km
B. 17 per sq km
C. 1029 per sq km
D. 954 per sq km
Answer: B
Q96. What is the meaning of an
'unregulated sector' in employment?
A. Organised Sector
B. Public Sector
C. Unorganised Sector
D. Government Sector
Answer: C
Q97. The term for the minimum income
point that separates the poor from the non-poor is the:
A. Economic Imbalance
B. Calorie Norm
C. Poverty Line
D. Worker-Population Ratio
Answer: C
Q98. According to the 2011 Census,
the highest sex ratio (1084) was in:
A. Assam
B. Haryana
C. Kerala
D. West Bengal
Answer: C
Q99. The lack of vocational and
technical education contributes to:
A. Rural poverty
B. Educated and self-employment
unemployment
C. Disguised unemployment
D. Seasonal unemployment
Answer: B
Q100. Which type of unemployment is
often found in the agriculture sector due to farming cycles?
A. Disguised unemployment
B. Industrial unemployment
C. Seasonal unemployment
D. Educated unemployment
Answer: C
Q101. The overall characteristic of
the Indian economy mentioned in the first part of the chapter is:
A. Widespread and severe poverty
B. Very low population growth
C. Low unemployment rate
D. High per capita income
Answer: A
Q102. The ratio of 940 represents
India's:
A. Population Density
B. Decadal Growth Rate
C. Sex Ratio
D. Worker-Population Ratio
Answer: C
Q103. The term 'Jobless Growth'
indicates that:
A. Unemployment is falling
B. National Income is rising without
creating sufficient jobs
C. Population growth is low
D. Wages are very high
Answer: B
Q104. Which of the following is a
cause of urban poverty NOT directly related to employment?
A. Lack of housing and creation of
slum areas
B. Low industrial production
C. Seasonal job losses
D. Faulty education system
Answer: A
Q105. The minimum calorie
requirement for a person in urban areas is:
A. 2400
B. 2100
C. 2000
D. 2250
Answer: B
Q106. The total population of India
in 2011 was 121 crores. What was the decadal growth rate?
A. 15.35%
B. 17.64%
C. 19.34%
D. 21.54%
Answer: B
Q107. The provision of insurance
cover and provident fund to a worker signifies:
A. High population density
B. Low economic growth
C. High qualitative standards of
employment
D. Suppressed inflation
Answer: C
Q108. The rise in the cost of raw
materials for production would most likely lead to:
A. Demand-pull inflation
B. Cost-push inflation
C. Open inflation
D. Suppressed inflation
Answer: B
Q109. What is the primary cause of
industrial unemployment?
A. High growth rate of agriculture
B. Slow rate of industrialisation
C. High wages in the industrial
sector
D. Lack of interest in factory work
Answer: B
Q110. Which committee reported that
29.5% of the population was below the poverty line in 2011-12?
A. Tendulkar Committee
B. Rangarajan Committee
C. Planning Commission
D. Naoroji Committee
Answer: B
Assertion
and Reasoning Questions
Instructions:
In the following questions, a
statement of Assertion (A) is followed by a statement of Reason (R).
Choose the correct option from the following:
(A) Both A and R are true, and R is
the correct explanation of A.
(B) Both A and R are true, but R is
not the correct explanation of A.
(C) A is true but R is false.
(D) A is false but R is true.
Q1.Assertion (A): The minimum calorie requirement set for the poverty line is
higher (2400) in rural areas than in urban areas (2100).
Reason (R): Rural people generally have to do more physical labour than
people in urban areas.
Correct Option: (A)
Q2.Assertion (A): Poverty in India is worsened by the "vicious cycle of
poverty."
Reason (R): The uneven distribution of wealth and income widens the gap
between the rich and poor, pushing the poor further into deprivation.
Correct Option: (A)
Q3.Assertion (A): The caste system is listed as an economic cause of poverty.
Reason (R): The caste system restricts a sizeable portion of the
population from the benefits of socio-economic development.
Correct Option: (D) (A is false; R is true)
Q4.Assertion (A): The eradication of poverty was adopted as a basic objective
during the Fifth Five Year Plan.
Reason (R): The Planning Commission used data collected by the National
Sample Survey Office (NSSO) to determine the poverty line.
Correct Option: (B)
Q5.Assertion (A): Dadabhai Naoroji explained the historical cause of poverty
in India.
Reason (R): His analysis focused on the depletion of Indian resources
during the British rule.
Correct Option: (A)
Q6.Assertion (A): The problem of slum areas in cities is a cause of rural
poverty.
Reason (R): Slums are created due to the endless flow of labour from
rural areas to the cities.
Correct Option: (D) (A is false—it's a result of urban poverty; R is
true)
Q7.Assertion
(A): India occupies the second position
in the world in terms of population size.Reason
(R): The decadal growth rate of population in India during
2001-2011 was 17.64%.
Correct
Option: (B)
Q8.Assertion
(A): The problem of population growth in
Assam is unique compared to many other states.
Reason
(R): Assam's population growth is
significantly aggravated by the unrestricted flow of population from
neighboring countries like Bangladesh and Nepal.
Correct
Option: (A)
Q9.Assertion
(A): According to the 2011 Census, the
lowest sex ratio in India was found in Kerala.
Reason
(R): The sex ratio in Kerala was 1084
(females per 1000 males), which is the highest in the country.
Correct
Option: (D) (A is false; R is true)
Q10.Assertion
(A): Population explosion leads to a
decrease in the capacity to save.
Reason
(R): A shortage of capital for
investment prevents economic development from reaching an encouraging level.
Correct
Option: (B)
Q11.Assertion (A): Disguised unemployment is when people are unemployed only
for a part of the year.
Reason (R): In disguised unemployment, the marginal productivity
(contribution to total production) of the extra worker is zero.
Correct Option: (D) (A is false; R is true)
Q12.Assertion (A): The problem of Jobless Growth is increasing in the Indian
economy.
Reason (R): The rate of growth of national income is higher than the
rate of growth of employment opportunities.
Correct Option: (A)
Q13.Assertion (A): The qualitative standard of employment is high in the
unorganised sector.
Reason (R): The unorganised sector, defined as having less than 10
workers, typically lacks social security facilities like Provident Fund and
medical insurance.
Correct Option: (D) (A is false; R is true)
Q14.Assertion (A): The problem of educated unemployment is mainly a result of
high population growth.
Reason (R): The prevailing educational system fails to impart
sufficient vocational and technical education, making people unfit for
self-employment.
Correct Option: (B)
Q15.Assertion (A): The Worker-Population Ratio is an important tool for
measuring employment status.
Reason (R): It is calculated by dividing the total workforce by the
total population and multiplying by 100.
Correct Option: (A)
Q16.Assertion (A): Slow rate of industrialisation is a cause of unemployment.
Reason (R): The rate of industrialisation is not sufficient to absorb
the large workforce coming from rural and educated sectors.
Correct Option: (A)
Q11.Assertion (A): Disguised unemployment is when people are unemployed only
for a part of the year.
Reason (R): In disguised unemployment, the marginal productivity
(contribution to total production) of the extra worker is zero.
Correct Option: (D) (A is false; R is true)
Q12.Assertion (A): The problem of Jobless Growth is increasing in the Indian
economy.
Reason (R): The rate of growth of national income is higher than the
rate of growth of employment opportunities.
Correct Option: (A)
Q13.Assertion (A): The qualitative standard of employment is high in the
unorganised sector.
Reason (R): The unorganised sector, defined as having less than 10
workers, typically lacks social security facilities like Provident Fund and
medical insurance.
Correct Option: (D) (A is false; R is true)
Q14.Assertion (A): The problem of educated unemployment is mainly a result of
high population growth.
Reason (R): The prevailing educational system fails to impart
sufficient vocational and technical education, making people unfit for
self-employment.
Correct Option: (B)
Q15.Assertion (A): The Worker-Population Ratio is an important tool for
measuring employment status.
Reason (R): It is calculated by dividing the total workforce by the
total population and multiplying by 100.
Correct Option: (A)
Q16.Assertion (A): Slow rate of industrialisation is a cause of unemployment.
Reason (R): The rate of industrialisation is not sufficient to absorb
the large workforce coming from rural and educated sectors.
Correct Option: (A)
Q17.Assertion (A): During inflation, there is a continuous rise in the general
price level.
Reason (R): During the period of inflation, the value of money
declines.
Correct Option: (B)
Q18.Assertion (A): Cost-push inflation is often described as "too much money
chasing too few goods."
Reason (R): Cost-push inflation is primarily caused by factors like a
rise in wages and the burden of taxes on commodities.
Correct Option: (D) (A is false; R is true)
Q19.Assertion (A): Suppressed inflation keeps the price level below the level
of open inflation.
Reason (R): The government controls prices through methods like the
public distribution system and price fixation.
Correct Option: (A)
Q20.Assertion (A): Demand-pull inflation occurs when the supply of commodities
exceeds the demand for goods.
Reason (R): This type of inflation happens when consumers have
increased money or purchasing power, leading to excess demand.
Correct Option: (D) (A is false; R is true)
Q21.Assertion (A): A rise in the cost of raw materials for production will
cause Demand-pull inflation.
Reason (R): A rise in the cost of production (like raw materials or
wages) is the main factor behind Cost-push inflation.
Correct Option: (D) (A is false; R is true)
Q22.Assertion (A): Open inflation is the best scenario for consumers and
producers.
Reason (R): Open inflation is a situation where there is no control
over the rise in prices and the increase is unrestricted.
Correct Option: (D) (A is false; R is true)
Q23. Assertion (A): The minimum calorie requirement for a person in urban areas is 2100 calories.
Reason (R): People in urban areas generally do less physical labour compared to rural areas.
Correct
Option: (B) (Both are true, but R explains why the number is
lower than rural areas, not why it is 2100 specifically).
Q24. Assertion (A): The problem of educated unemployment is a major challenge in India.
Reason (R): The prevailing educational system lacks sufficient vocational and technical education, making youth unfit for self-employment.
Correct
Option: (A)
Q25. Assertion (A): The qualitative standard of employment is generally low in the unorganised sector.
Reason (R): The unorganised sector is defined as having a number of workers that is less than 10.
Correct
Option: (B) (Both are true, but the low worker count defines
the sector, it doesn't explain the absence of security benefits.)
Q26. Assertion (A): India's sex ratio according to the 2011 Census is 940 (females per 1000 males).
Reason (R): Kerala is the state with the highest sex ratio (1084).
Correct
Option: (B) (Both are true facts, but the highest state sex ratio is
not the explanation for the national average.)
Q27. Assertion (A): The problem of rural poverty is often linked to the lack of land ownership.
Reason (R): Seasonal unemployment is extremely common in the agriculture sector.
Correct
Option: (B) (Both are true factors contributing to rural poverty,
but they are separate causes, not explanations for each other.)
Q28. Assertion (A): The Rangarajan Committee presented its report on poverty in 2014.
Reason (R): The Tendulkar Committee was the first expert committee to methodically study poverty and gave its findings for the period 2009-10.
Correct
Option: (B) (Both A and R are true historical facts, but R does not
explain why A happened.)
Q29. Assertion (A): Industrial unemployment is prevalent in India.
Reason (R): The rate of industrialisation has been slow and is not sufficient to absorb the large workforce.
Correct
Option: (A)
Q30. Assertion (A): Inflation decreases the value of money.
Reason (R): This decline in the value of money is the fundamental reason for Cost-push inflation.
Correct
Option: (C) (A is true; R is false, as Cost-push inflation is caused
by rising input costs, not by the decreased value of money).
Q31. Assertion (A): Assam's decadal growth rate (15.35%) is lower than India's average decadal growth rate (17.64%).
Reason (R): Assam’s sex ratio (954) is higher than the national average (940).
Correct
Option: (B) (Both are true demographic facts, but they are not
related causes or explanations.)
Q32. Assertion (A): A rise in profits can lead to Cost-push inflation.
Reason (R): This rise in profits increases the overall cost of the product, which is passed on to the consumers.
Correct Option: (A) (R explains the mechanism by which profit increases cause this type of inflation.)
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