Poverty, inequality and unemployment. - Question Bank

1. The 'Multidimensional Poverty Index' (MPI) provides a more comprehensive picture of poverty than the income-based poverty line because it considers:
A) Only the depth of poverty
B) Deprivations across multiple dimensions like health, education, and living standards
C) The number of people above the poverty line
D) The rate of economic growth
2. The National Commission for Enterprises in the Unorganised Sector (NCEUS) was established to:
A) Regulate large corporations
B) Address the challenges faced by the informal sector
C) Promote foreign direct investment
D) Manage public sector undertakings
3. Which committee recommended a shift from calorie-based poverty line to a minimum basic needs approach?
A) Tendulkar Committee
B) Rangarajan Committee
C) Alagh Committee
D) Dandekar and Rath Committee
4. The Gini coefficient ranges from 0 to 1. A value of 0 represents:
A) Perfect inequality
B) Perfect equality
C) Moderate inequality
D) Absolute poverty
5. Which of the following is a government initiative to promote financial inclusion and reduce poverty?
A) Increasing the repo rate
B) Pradhan Mantri Jan Dhan Yojana
C) Reducing subsidies on essential goods
D) Implementing strict capital controls
6. The concept of 'lump of labour' fallacy suggests that:
A) There is a fixed amount of work to be done, so more automation leads to more unemployment
B) Technological progress always creates more jobs than it destroys
C) Unemployment is solely caused by individual choices
D) The labor market is perfectly efficient
7. Which of the following is a characteristic of the informal sector employment in India?
A) Job security and social security benefits
B) Low wages, poor working conditions, and lack of job security
C) High levels of unionization
D) Stable and regular employment
8. The Rangarajan Committee's poverty line was higher than the Tendulkar Committee's because it included:
A) Only food expenditure
B) A broader basket of food and non-food items
C) Only basic amenities
D) Income levels
9. Which of the following is a social consequence of poverty?
A) Improved health outcomes
B) Increased access to education
C) Higher crime rates and social instability
D) Greater social mobility
10. The term 'underemployment' refers to:
A) Being unemployed and seeking work
B) Working in a job for which one is overqualified or working fewer hours than desired
C) Being employed in a job that requires no skills
D) Being employed but earning very low wages
11. Which of the following is a measure to address inequality in education?
A) Reducing funding for public schools
B) Implementing reservation policies
C) Increasing tuition fees for higher education
D) Focusing only on vocational training
12. The 'Poverty Gap Index' (PGI) measures:
A) The number of poor people
B) The average distance of the poor from the poverty line
C) The depth of poverty
D) The income of the richest segment
13. Which of the following is a major cause of poverty in rural India?
A) High levels of industrialization
B) Over-reliance on agriculture with low productivity and landlessness
C) Abundant non-agricultural employment opportunities
D) Effective social security systems
14. The 'Headcount Ratio' (HCR) measures:
A) The average income shortfall of the poor
B) The proportion of the population living below the poverty line
C) The intensity of poverty
D) The total poverty gap
15. Which of the following is an example of cyclical unemployment?
A) A coal miner losing his job due to mine closure
B) A software engineer losing his job due to automation
C) A construction worker losing his job during an economic recession
D) A teacher taking a break between academic years
16. The World Bank's poverty line is currently set at approximately what amount per day in 2011 PPP dollars?
A) $1.25
B) $1.90
C) $2.50
D) $3.20
17. The concept of 'human capital' is crucial in understanding unemployment because:
A) Low human capital can lead to lower employability
B) High human capital guarantees employment
C) Human capital is unrelated to employment
D) Human capital only affects self-employment
18. The problem of unemployment in India is largely characterized by:
A) Shortage of skilled labor
B) High levels of disguised and underemployment
C) Frictional unemployment only
D) Lack of demand for labor in general
19. Which of the following is a policy instrument to reduce income inequality?
A) Regressive taxation
B) Reducing minimum wage
C) Progressive taxation and wealth redistribution
D) Deregulation of labor markets
20. The 'poverty trap' is a situation where:
A) Individuals can easily escape poverty
B) Individuals are unable to escape poverty due to a lack of resources and opportunities
C) Poverty levels are constantly declining
D) The government provides ample social welfare
21. Which of the following schemes aims to provide guaranteed wage employment to rural households?
A) Pradhan Mantri Jan Dhan Yojana
B) National Rural Livelihoods Mission
C) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
D) Swachh Bharat Abhiyan
22. The 'Social Exclusion' approach to poverty emphasizes:
A) Lack of financial resources
B) Lack of access to opportunities and participation in society
C) Low calorie intake
D) Low levels of education
23. The term 'hidden unemployment' is often used interchangeably with:
A) Frictional unemployment
B) Cyclical unemployment
C) Disguised unemployment
D) Structural unemployment
24. Which of the following is a measure to combat unemployment?
A) Reducing investment in infrastructure
B) Promoting skill development programs
C) Increasing import tariffs
D) Devaluing the currency
25. The 'Kuznets Curve' hypothesis suggests that as an economy develops, inequality:
A) Continuously decreases
B) Initially increases and then decreases
C) Continuously increases
D) Remains constant
26. The concept of 'inter-generational poverty' refers to:
A) Poverty that persists across generations within a family
B) Poverty experienced during old age
C) Poverty that occurs due to natural disasters
D) Poverty that is temporary and short-lived
27. Which of the following is a consequence of high unemployment?
A) Increased economic growth
B) Reduced crime rates
C) Social unrest and increased poverty
D) Higher tax revenues
28. The 'Poverty Elimination Programme' launched by the Indian government aims to:
A) Increase the Gini coefficient
B) Reduce the number of people living below the poverty line
C) Widen the income gap
D) Promote unemployment
29. The 'working poor' are individuals who:
A) Are unemployed but actively seeking work
B) Are employed but earn wages insufficient to lift them out of poverty
C) Are employed in the informal sector
D) Are employed but work very long hours
30. Which factor significantly contributes to income inequality in India?
A) Uniform land distribution
B) Progressive taxation system
C) Skill-biased technological change and unequal access to education
D) Strong social safety nets
31. The 'double burden of poverty' refers to:
A) Poverty and unemployment simultaneously
B) Poverty and inequality simultaneously
C) Poverty and illiteracy simultaneously
D) Poverty and lack of healthcare simultaneously
32. Which of the following is a policy measure to reduce poverty?
A) Increasing interest rates
B) Implementing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
C) Reducing government subsidies
D) Tightening monetary policy
33. The National Sample Survey Office (NSSO) is responsible for collecting data on:
A) National Income
B) Consumer Expenditure and Employment-Unemployment
C) Industrial Production
D) Inflation Rates
34. The concept of 'absolute poverty' is best described as:
A) Relative deprivation compared to others in society
B) Inability to meet basic survival needs
C) Low social status
D) Lack of political power
35. Which type of unemployment occurs when workers are between jobs or are searching for new employment opportunities?
A) Structural Unemployment
B) Frictional Unemployment
C) Cyclical Unemployment
D) Seasonal Unemployment
36. The 'Poverty Line' in India is generally defined based on:
A) Per capita income
B) Per capita consumption expenditure
C) Human Development Index
D) Gini Coefficient
37. The 'urban poverty' in India is often associated with:
A) Low agricultural productivity
B) Lack of access to basic services and informal employment
C) Large landholdings
D) Seasonal migration
38. Which of the following is NOT a dimension considered in the Multidimensional Poverty Index (MPI)?
A) Health
B) Education
C) Standard of Living
D) Income
39. The 'Capability Approach' to poverty, advocated by Amartya Sen, focuses on:
A) Income and consumption levels
B) The freedom and opportunities individuals have to achieve well-being
C) Access to basic amenities
D) Social exclusion
40. Disguised unemployment is most prevalent in which sector of the Indian economy?
A) Manufacturing Sector
B) Service Sector
C) Agriculture Sector
D) Construction Sector
41. Which indicator measures the extent to which people fall below the poverty line?
A) Headcount Ratio
B) Poverty Gap Index
C) Multidimensional Poverty Index
D) Gini Coefficient
42. The Rangarajan Committee (2014) suggested a poverty line based on:
A) A minimum consumption basket of food and non-food items
B) Calorie intake and basic needs
C) Capability deprivation
D) Income levels
43. Which of the following is a primary cause of structural unemployment?
A) A general economic downturn
B) A mismatch between the skills of workers and the skills demanded by employers
C) Workers voluntarily leaving their jobs to search for new ones
D) Seasonal fluctuations in demand
44. The Tendulkar Committee (2009) proposed a new methodology for poverty estimation based on:
A) Calorie norms and the MRP method
B) Direct recall method and consumption expenditure
C) Minimum basic needs approach
D) Capability approach
45. The concept of 'relative poverty' refers to:
A) Living below a subsistence level of income
B) Having an income significantly lower than the median income in a society
C) Inability to meet basic needs like food, shelter, and clothing
D) Lack of access to essential services like healthcare and education
46. Which type of unemployment is characterized by a temporary fall in demand for labor during certain periods of the year?
A) Structural Unemployment
B) Frictional Unemployment
C) Cyclical Unemployment
D) Seasonal Unemployment
47. The Gini coefficient is a measure of statistical dispersion intended to represent the income or wealth distribution of a nation's residents, and is named after:
A) Amartya Sen
B) Corrado Gini
C) Mahalanobis
D) Amartya Sen
48. Which committee in India recommended the concept of a 'poverty line' based on a minimum level of consumption?
A) Tendulkar Committee
B) Rangarajan Committee
C) Alagh Committee
D) Lakdawala Committee
49. The Lorenz curve is a graphical representation of:
A) The distribution of income or wealth
B) The rate of unemployment over time
C) The incidence of poverty across regions
D) The growth rate of GDP
50. Which of the following is a multidimensional measure of poverty developed by the Oxford Poverty and Human Development Initiative (OPHI)?
A) Headcount Ratio
B) Poverty Gap Index
C) Multidimensional Poverty Index (MPI)
D) Gini Coefficient
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