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Economics 4 Marks Question

Poverty · CBSE STD 12 Commerce (CBSE - English Medium). 16 questions.

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Question 14 Marks
What is meant by "Food for Work" programme? Explain.
Answer
In the 1970s, the policy makers started thinking that the income and employment of the poor can be raised through the creation of additional assets and by means of work generation.Thus, one of the noted programme initiated in the above direction was 'Food for work. It is given the status of Specific Poverty Alleviation Programme.
National Food for Work Programme (NFWP) was launched in February 2001 for five months but was further extended. It aims at promoting food security through wage employment in the drought affected rural areas in eight states-Maharashtra, Gujarat, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Uttarkhand, Odisha and Rajasthan.
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Question 24 Marks
Name any four anti-poverty programmes launched by Government in recent years.
Answer
Following are the four anti-poverty programmes launched by Government in recent years:
  1. Swaranjayanti Gram Swarozgar Yojana (SGSY): To remove poverty from the rural areas, the programme was launched on April 1, 1999.
  2. Sampoorna Gramin Rozgar Yojana (SGRY): It was launched on Sept. 25, 2001.
  3. Pradhan Mantri Gramodaya Yojana (PMGY): It was launched in 2000-2001.
  4. National Rural Employment Guarantee Scheme (NREGS): It was launched in August 2005. The scheme guarantees 100 days of wage employment in a year to every rural household.
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Question 34 Marks
How does poverty line categorise poor people?
Answer
Poverty line provides us three categories of poor people:
  1. Chronic poor: They usually live below the poverty line, e.g., casual workers, landless workers etc. Such category can be of two types (i) Always poor (ii) Usually poor.
  2. Transient poor: Such category can be of two types (i) Churning poor (ii) Occasionally poor. Churning poor regularly move in and move out of poverty, e.g., seasonal workers, small farmers. Occasionally poor are rich most of the time but may sometimes have a patch of bad luck, e.g., people who gamble.
  3. Non-poor: Such category can be of two types (i) Occasionally Poor (ii) Never Poor. Never poor category includes those who live above the poverty line, e.g., doctors, teachers, etc.
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Question 44 Marks
Explain any three schemes launched by the government to remove poverty.
Answer
The three schemes launched by the government to remove poverty are:
  1. Rural Employment Generation Programme (REGP): It aims at creating self-employment opportunities in rural areas. Under it, one can get financial assistance by way of bank loans to set up small industries.
  2. Prime Minister's Rozgar Yojana (PMRY): Under PMRY, the educated unemployed from low-income families in rural and urban areas, can get financial help to set up any kind of enterprise that generates employment.
  3. Swarna Jayanti Shahari Rozgar Yojana (SJSRY): It aims at creating employment opportunities in terms of self-employment and wage employment, in urban areas only.
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Question 54 Marks
Write any three measures to remove poverty.
OR
Briefly explain three measures to remove poverty in India.
Answer
Measures to remove poverty in India:
  1. 'Trickle-down effect' is an economic theory that says that the growth of gross domestic product and per capita income by allowing the rich to flourish, would eventually benefit lower income groups also through increased economic activity and reduced unemployment.
It was government's approach to poverty reduction It was felt that rapid industrial development and transformation of agriculture through green revolution would benefit the underdeveloped regions and the more backward sections of the community,
  1. Expanding self-employment and wage-employment programmes are being considered as the major ways of addressing poverty. Some of them are:
  1. Self-employment programmes:
  • National Social Assistance Programme.
  • Rural Employment Generation Programme (REGP).
  • .Prime Minister's Rozgar Yojana (PMRY).
  • Swarna Jayanti Shahari Rozgar Yojana (SUSRY).
  1. Wage-employment programmes:
  • National Food for Work Programme (NFWP).
  • National Rural Employment Guarantee Act, 2005.
  • Sampoorna Grameen Rozgar Yojana (SGRY).
  1. The third measure is to provide minimum basic amenities to the people, through public expenditure on social consumption needs, provision of foodgrains at subsidised rates, education, health, water supply and sanitation. Programmes under this approach are expected to supplement the consumption of the poor, create employment opportunities and bring about improvements in health and education.
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Question 64 Marks
Explain the 'trickle down effect'.
Answer
'Trickle down effect' is an economic theory that says that the growth of gross domestic product and per capita income by allowing the rich to flourish, would eventually benefit lower income groups also through increased economic activity and reduced unemployment.
It was government's approach to poverty reduction.
It was felt that rapid industrial development and transformation of agriculture through green revolution would benefit the underdeveloped regions and the backward sections of the community.
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Question 74 Marks
How did the British rule led to poverty of the Indian masses?
Answer
The British rule had a negative impact on the Indian economy:
  1. There was substantial de-industrialisation in India. Imports of manufactured cotton cloth from England displaced local production and India was reduced to being an exporter of cotton yarn.
  2. Our industries were made to produce raw materials for the British at low prices and import manufactured goods at high prices.
  3. Indian farmers were forced to grow more of cash crops and export food grains to fetch revenue for the British.
  4. British policies involved sharply raising rural taxes that made merchants and money lenders to become large landowners, who exploited the people by way of low wages, high interest on loans, etc.
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Question 84 Marks
Read the passage given below and answer the following questions from 1 to 4.
The Centre of considering extending the free foodgrain and pulse distribution scheme, under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), for 3-4 months. This is in view of the spike in Covid cases, and also to provide relief to the millions of poor families who have suffered during the pandemic, said people in the know. For wheat, rice and pulses (notably chana), the Centre has adequate stock to provide for free until March 2021.
"Details have been sought from various agencies involved in the distribution of grains and pulses through the Public Distribution System in the first eight months of this fiscal year, and a final decision on the same is under consideration" said a senior official.
Under PMGKAY 1 and 2, which started from April and is due to end in November, the government has so far distributed an additional 5kg of wheat and rice per month to 800 million beneficiaries of the National Pood Security Act (NFSA), over their usual entitlement of 5kg of grains a month.
In addition, the government has distributed 1kg of free pulses (largely chana) to every NFSA family in the last eight months, numbering 200 million. Overall, 32 million tonnes (mt) of wheat and rice have been made available for free, alongwith 1.4 mt of pulses, a bulk of which is chana, show government estimates. Source: Business Standard, 26 Nov. 2020.
  1. The Centre has sufficient stock to provide free wheat and rice until.......... 2021.
  1. March
  2. May
  3. June
  4. April
  1. NFSA stands for...........?
  1. National Food Service Art
  2. National Food Security Act
  3. National Finance Security Act
  4. National Finance Service Act
  1. Government gives free food grains and pulses to poor families under the scheme............?
  1. PMGKAY
  2. NFSA
  3. Both [a] and [b]
  4. None of these
  1. Nutritions requirements are .......... calories per person per day in rural areas whereas.......... calories per person per day in urban areas.
  1. 2500, 2200
  2. 2400, 2100
  3. 2400, 2300
  4. None of these
Answer
  1. (A) March.
  2. (B) National Food Security Act.
  3. (A) PMGKAY.
  4. (B) 2400, 2100
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Question 94 Marks
How has globalisation led to further impoverishment of rural masses?
Answer
Globalisation has pushed many households below the poverty line. This has been due to:
  1. The production of some of the most important staple crops had declined as agricultural land is used for production of export crops after the onset of the globalisation process.
  2. Liberalisation has forced the small farmers to compete in a global market where prices of agricultural goods have fallen.
  3. Reduction of government subsidies made farming more expensive.
  4. The withdrawal of investment of the government in agriculture.
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Question 104 Marks
Read the passage given below and answer the following questions from 1 to 4.
The World Development Report 1990 endorsed a poverty alleviation strategy that combines enhanced economic growth with provisions of essential social services directed towards the poor while creating financial and social safety nets. Numerous social safety net programmes and public spending on social protection including social insurance schemes and social assistance payments continue to act as tools of poverty alleviation in many of the developing countries across the world. These social safety nets and protection programmes show positive impacts on the reduction of poverty extent Vulnerability and on a wide range of social inequalities in developing countries. One major concern dogging these programmes however is their long-term sustainability. Singh and Chudasama PLos ONE
  1. In India poverty alleviation programme were introduced from.................... Five Year plan.
  1. First
  2. Second
  3. Third
  4. Fourth
  1. In India poverty alleviation programme were infrastructure development.
  1. True
  2. False
  3. Sometime true & sometime false
  4. None of the ab
 
  1. Which of the following programmes provide insurance cover to poor?
  1. National Social Assistance Programme
  2. Pradhan Mantri Jan Dhan Yojana
  3. Mahatma Gandhi National Rural Employment Guarantee Act
  4. Prime Minister's Employment Generation Programme
  1. National Urban Livelihood Mission is based on the approach of.....................?
  1. Self-help group
  2. Supplementing consumption of poor
  3. Both [a] and [b]
  4. None of the above
Answer
  1. (C) Third
  2. (A) True
  3. (B) Pradhan Mantri Jan Dhan Yojana
  4. (A) self-help group
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Question 114 Marks
Explain the current condition of poor people.
Answer
Poor people may be categorised into two groups.
  1. Poor and vulnerable groups in urban areas.
  2. Poor group in rural areas.
Push cart vendors, street cobblers, and beggars are some examples of poor groups in urban areas. They live in kuccha houses with walls made of baked mud and roofs made of grass, bamboo and wood. Some of them even do not have such dwellings. They live on pavements. In rural areas, poor groups are usually landless. They do not even get two meals a day. Malnutrition is high among the poor. Ill health, disability makes them physically weak. A large section of poor people do not even have access to safe drinking water. Poor women receive less care on their way to motherhood.
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Question 124 Marks
Why calorie-based norm is not adequate to identify the poor?
Answer
The calorie-based norm is not adequate to identify the poor because:
  • This mechanism groups all people together and does not differentiate between a very poor from other poor making it difficult to identify who are the most needy.
  • The norm only uses expenditure on food and some selected few items as basis of estimating poor.
  • This norm does not consider various important factors that are associated with poverty. These factors are health care, clean drinking water, proper sanitation and basic education.
  • It also fails to account for social factors that exaggerate and worsen poverty like ill health, lack of access to resources, lack of civil and political freedom, etc.
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Question 134 Marks
Discuss the trends in poverty ratio in India.
Answer
The following trends in poverty ratio have been found in India:
  1. In 1973-74, more than 321 million people were below the poverty line. In 2010, this number came to about 35.46 crores.
  2. In terms of proportion, in 1973-74, about 55 percent of the total population was below the poverty line. In 2010, it fell to 29.8 percent.
  3. In 1973-74, more than 80 percent of the poor resided in rural areas and in 2004-05, this came down to about 60 percent. This means that more than threefourths of the poor in India live in villages.
  4. In the 1990s, the absolute number of the poor in rural areas had declined whereas the number of their urban counterparts increased marginally. The poverty ratio declined continuously for both rural and urban areas.
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Question 144 Marks
What is meant by ‘Food for Work’ programme?
Answer
National Food for Work Programme (NFWP). This programme was initially launched w.e.f. February 2001 for five months and was further extended. This programme aims at augmenting food security through wage employment in the drought affected rural areas in eight States, i.e., Gujarat, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Maharashtra, Orissa, Rajasthan and Uttaranchal. The centre makes available appropriate quantity of foodgrains free of cost to each of the drought affected States as an additionality under the programme. Wages by the State government can be paid partly in kind and partly in cash. The workers are paid the balance of wages in cash, such that they are assured of the notified minimum wages.
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Question 154 Marks
Explain 'Income and Employment Generation' based strategy for poverty alleviation.
Answer
While dealing with the 'Income and Employment Generation based strategy policy-makers thought that income and employment for the poor could be raised through the creation of additional assets and by means of work generation.
This could be achieved through specific poverty alleviation programmes, which are based on the perspective of the Five Year Plans.
Expanding self-employment programmes and wage employment programmes, such as Rural Employment Generation Programme (REGP), Pradhan Mantri Rozgar Yojana (PMRY) and National Food for Work Programme are considered as the major ways of addressing poverty.
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Question 164 Marks
"High growth alone is not sufficient to reduce poverty." Do you agree? Justify your answer.
Answer
It is correctly stated that high growth alone is not sufficient to reduce poverty. What is urgently required along with the high growth rate is the active and keen participation of the poor. Until and unless the poor anxiously participate they can not be empowered and heard. So, the poor have to awake and arise to enjoy the benefits of high growth. A process of social mobilisation is called for. Not only the government agencies but various NGOs will also have to play an active role to promote the participation and empowerment of the poor.
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