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Poverty – CBSE NCERT Study Resources

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11th

11th - Economics

Poverty

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Overview of the Chapter: Poverty

This chapter explores the concept of poverty, its causes, consequences, and measures to alleviate it. It aligns with the CBSE curriculum for Grade 11 Economics, focusing on understanding poverty as a socio-economic challenge in India and globally.

Poverty: A condition where individuals or communities lack the financial resources and essentials for a minimum standard of living.

Types of Poverty

  • Absolute Poverty: A situation where individuals cannot afford basic necessities like food, shelter, and clothing.
  • Relative Poverty: A condition where individuals are poor in comparison to others in society.

Causes of Poverty

  • Unemployment and underemployment
  • Low agricultural productivity
  • Lack of access to education and healthcare
  • Social inequalities and discrimination

Consequences of Poverty

  • Malnutrition and poor health
  • Low literacy rates
  • Social exclusion and crime

Measures to Alleviate Poverty

  • Government schemes like MGNREGA, PMAY, and NFSA
  • Promotion of education and skill development
  • Economic reforms and inclusive growth policies

Poverty Line in India

The poverty line is determined based on calorie intake and expenditure. The Planning Commission (now NITI Aayog) estimates it using monthly per capita consumption expenditure.

Poverty Line: The minimum income level required to meet basic needs, as defined by the government.

Global Poverty Trends

While poverty has declined globally, regional disparities persist. Countries in Sub-Saharan Africa and South Asia face higher poverty rates compared to developed nations.

Conclusion

Understanding poverty is crucial for formulating effective policies to reduce economic disparities and improve living standards. The chapter emphasizes the role of government and society in poverty eradication.

All Question Types with Solutions – CBSE Exam Pattern

Explore a complete set of CBSE-style questions with detailed solutions, categorized by marks and question types. Ideal for exam preparation, revision and practice.

Very Short Answer (1 Mark) – with Solutions (CBSE Pattern)

These are 1-mark questions requiring direct, concise answers. Ideal for quick recall and concept clarity.

Question 1:
Define poverty line as per CBSE.
Answer:
Definition: Minimum income required to meet basic needs like food, shelter, and clothing.
Question 2:
What is the headcount ratio?
Answer:

Percentage of population below the poverty line.

Question 3:
Name two relative poverty measures.
Answer:
  • Income inequality
  • Social exclusion
Question 4:
List one absolute poverty indicator.
Answer:

Calorie intake per day (e.g., 2100 kcal urban).

Question 5:
What is chronic poverty?
Answer:

Long-term deprivation lasting generations.

Question 6:
Give an example of urban poverty.
Answer:

Slum dwellers lacking clean water.

Question 7:
State one NREGA objective.
Answer:

Provide 100 days of wage employment.

Question 8:
What does MPCE stand for?
Answer:

Monthly Per Capita Expenditure.

Question 9:
Identify a poverty alleviation program.
Answer:

PM-KISAN for farmer income support.

Question 10:
How is poverty gap calculated?
Answer:

Difference between PL and avg income of poor.

Question 11:
Name a global poverty index.
Answer:

Multidimensional Poverty Index (MPI).

Question 12:
What causes seasonal poverty?
Answer:

Agricultural off-seasons reducing income.

Question 13:
Define social mobility in poverty context.
Answer:

Ability to move out of poverty.

Question 14:
List one SDG targeting poverty.
Answer:

SDG 1: No Poverty.

Question 15:
What is the vicious cycle of poverty?
Answer:

The vicious cycle describes how poverty leads to low savings → no investment → low productivity → low income, trapping generations in deprivation.

Question 16:
Define poverty line as per the Tendulkar Committee.
Answer:

The poverty line is the minimum level of income required to meet basic needs like food, clothing, and shelter. The Tendulkar Committee (2009) defined it as ₹816 per capita per month in rural areas and ₹1,000 per capita per month in urban areas (2011-12 prices). It also included health and education expenses.

Question 17:
What is the main cause of chronic poverty in India?
Answer:

The main cause of chronic poverty is the lack of access to resources like land, education, and employment opportunities. Other factors include:

  • Low agricultural productivity
  • Social discrimination (caste/religion)
  • Inadequate government policies

Question 18:
Name two absolute poverty indicators.
Answer:

Two indicators of absolute poverty are:

  • Calorie intake (less than 2,400 kcal/day in rural areas and 2,100 kcal/day in urban areas)
  • Income level (below the poverty line)

Question 19:
What is the difference between absolute and relative poverty?
Answer:

Absolute poverty refers to a fixed income threshold below which basic needs are unmet, while relative poverty compares income inequality within a society.
Example: A person earning ₹500/day is poor in the USA but not in India.

Question 20:
How does illiteracy contribute to poverty?
Answer:

Illiteracy limits job opportunities, reduces awareness of government schemes, and perpetuates low-income cycles. Example: Uneducated individuals often work in informal sectors with unstable wages.

Question 21:
What is the Multidimensional Poverty Index (MPI)?
Answer:

The MPI measures poverty using health, education, and living standards (e.g., malnutrition, school attendance, sanitation). It was introduced by the UNDP in 2010.

Question 22:
List two self-employment programs to reduce poverty.
Answer:

Two programs are:

  • PM Rozgar Yojana (PMRY)
  • National Rural Livelihood Mission (NRLM)

Question 23:
Why is rural poverty higher than urban poverty in India?
Answer:

Rural poverty is higher due to:

  • Dependence on agriculture (low income)
  • Lack of infrastructure (roads, healthcare)
  • Seasonal unemployment

Question 24:
What is the role of MNREGA in poverty alleviation?
Answer:

MNREGA guarantees 100 days of wage employment/year to rural households, ensuring income security and reducing seasonal poverty. It also promotes asset creation (e.g., roads, ponds).

Question 25:
How does population growth worsen poverty?
Answer:

Population growth strains resources (jobs, food, housing), leading to lower per capita income and higher unemployment. Example: Overcrowding in slums due to migration.

Question 26:
Name two states with the highest poverty rates in India.
Answer:

As per recent data:

  • Bihar
  • Jharkhand

Question 27:
Define poverty line as per the Indian context.
Answer:

The poverty line is the minimum level of income required to meet basic needs like food, clothing, and shelter. In India, it is calculated based on calorie consumption (2400 kcal per person per day in rural areas and 2100 kcal in urban areas).

Question 28:
What is the main cause of chronic poverty?
Answer:

Chronic poverty is caused by long-term factors like lack of education, unemployment, and social discrimination, which trap individuals in poverty for generations.

Question 29:
Name two absolute poverty measures used globally.
Answer:
  • World Bank's $1.90 per day (2011 PPP) threshold
  • United Nations' Multidimensional Poverty Index (MPI)
Question 30:
What is the role of MNREGA in poverty alleviation?
Answer:

MNREGA guarantees 100 days of wage employment annually to rural households, ensuring income security and reducing poverty.

Very Short Answer (2 Marks) – with Solutions (CBSE Pattern)

These 2-mark questions test key concepts in a brief format. Answers are expected to be accurate and slightly descriptive.

Question 1:
What is the difference between absolute poverty and relative poverty?
Answer:

Absolute poverty refers to a condition where individuals lack basic necessities like food and shelter, while relative poverty compares income levels within a society, identifying those below a certain threshold relative to others.

Question 2:
Name two major causes of poverty in India.
Answer:
  • Unemployment and underemployment
  • Low agricultural productivity due to outdated farming techniques
Question 3:
Explain the concept of vulnerability to poverty.
Answer:

Vulnerability to poverty refers to the likelihood of certain individuals or groups falling below the poverty line due to factors like economic shocks, natural disasters, or social discrimination.

Question 4:
What is the role of education in reducing poverty?
Answer:

Education helps reduce poverty by improving employability, increasing awareness about rights, and enabling better decision-making for economic growth.

Question 5:
How does population growth contribute to poverty?
Answer:

Rapid population growth strains resources, reduces per capita income, and increases competition for jobs, exacerbating poverty.

Question 6:
What are the two main approaches to poverty alleviation in India?
Answer:
  • Direct approach: Providing immediate relief (e.g., subsidies, PDS)
  • Indirect approach: Long-term solutions (e.g., education, skill development)
Question 7:
Define multidimensional poverty.
Answer:

Multidimensional poverty measures deprivation beyond income, including lack of education, healthcare, and living standards.

Question 8:
What is the significance of self-employment programs in poverty reduction?
Answer:

Self-employment programs empower individuals to generate income, reduce dependency, and promote entrepreneurship.

Question 9:
How does social exclusion lead to poverty?
Answer:

Social exclusion denies marginalized groups access to resources, opportunities, and services, perpetuating poverty cycles.

Question 10:
Name two government schemes aimed at poverty alleviation in India.
Answer:
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
  • Pradhan Mantri Awas Yojana (PMAY)

Short Answer (3 Marks) – with Solutions (CBSE Pattern)

These 3-mark questions require brief explanations and help assess understanding and application of concepts.

Question 1:
Define poverty line and explain how it is determined in India.
Answer:

The poverty line is the minimum level of income required to meet basic needs such as food, clothing, and shelter. In India, it is determined based on calorie consumption and expenditure levels.

The Tendulkar Committee (2009) defined the poverty line as:
1. Urban areas: ₹1,000 per capita per month (approx. 2,100 calories/day).
2. Rural areas: ₹816 per capita per month (approx. 2,400 calories/day).

Later, the Rangarajan Committee (2014) revised these estimates to include non-food expenses like health and education.

Question 2:
Explain the concept of relative poverty with an example.
Answer:

Relative poverty refers to a situation where individuals or groups lack resources compared to the average standard of living in society. Unlike absolute poverty, it is context-dependent.

Example: A family earning ₹20,000/month in a city where the average income is ₹50,000/month may struggle to afford education or healthcare, placing them in relative poverty.

This concept highlights inequality rather than survival needs.

Question 3:
Describe any three causes of poverty in India.
Answer:

The three major causes are:

  • Unemployment: Lack of stable jobs forces people into low-paying informal work.
  • Population growth: Rapid increase strains limited resources and job opportunities.
  • Unequal distribution: Wealth concentration among a few leaves others with minimal access to assets.

Other factors include illiteracy, social exclusion, and inadequate infrastructure.

Question 4:
How does the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) help reduce poverty?
Answer:

MGNREGA guarantees 100 days of wage employment annually to rural households, addressing poverty through:

  • Income security: Direct wages improve purchasing power.
  • Asset creation: Work like road construction boosts rural infrastructure.
  • Social inclusion: Prioritizes marginalized groups (SC/ST/women).

It also reduces migration by providing local employment.

Question 5:
Differentiate between chronic and transient poverty.
Answer:

Chronic poverty is long-term deprivation where individuals remain poor for years due to structural factors like caste or disability. Transient poverty is temporary, caused by shocks like illness or natural disasters.

Key differences:
1. Duration: Chronic is persistent; transient is short-term.
2. Causes: Chronic stems from systemic issues; transient from sudden events.
3. Solutions: Chronic needs policy interventions; transient requires safety nets.

Question 6:
What role does education play in poverty alleviation?
Answer:

Education breaks the cycle of poverty by:

  • Skill development: Enhances employability for better-paying jobs.
  • Awareness: Empowers people to access government schemes.
  • Social mobility: Reduces intergenerational poverty.

For example, educated farmers adopt modern techniques, increasing yields and income.

Question 7:
Differentiate between absolute poverty and relative poverty with examples.
Answer:

Absolute poverty refers to a condition where individuals cannot afford basic necessities like food, shelter, and clothing. Example: A family earning less than ₹1,000/month in urban India.

Relative poverty compares income inequality within a society. Example: A household earning 50% less than the national average income, even if their basic needs are met.

Question 8:
Explain any three major causes of poverty in India.
Answer:

  • Unemployment: Lack of job opportunities forces people into low-income informal sectors.
  • Population growth: Rapid increase strains limited resources and reduces per capita income.
  • Unequal distribution: Wealth concentration in few hands leaves majority with minimal access to resources.

Question 9:
What is the multidimensional poverty index (MPI)? List any two indicators used in its calculation.
Answer:

The Multidimensional Poverty Index (MPI) measures poverty beyond income by assessing health, education, and living standards. Two indicators:
1. Nutrition: Percentage of undernourished individuals.
2. School attendance: Children not completing basic education.
Developed by UNDP, it provides a holistic view of deprivation.

Question 10:
Describe the concept of vulnerability to poverty with an example.
Answer:

Vulnerability to poverty refers to the risk of falling below the poverty line due to shocks like illness or natural disasters. Example:
A daily-wage laborer may become poor if:
1. They fall sick and lose income.
2. Floods destroy their home.
Such groups lack savings or insurance to cope with emergencies.

Long Answer (5 Marks) – with Solutions (CBSE Pattern)

These 5-mark questions are descriptive and require detailed, structured answers with proper explanation and examples.

Question 1:
Analyze the multidimensional nature of poverty in India with reference to social exclusion and economic deprivation.
Answer:
Theoretical Framework

Poverty is not just income deficiency but includes lack of education, healthcare, and social participation. Our textbook shows Amartya Sen's capability approach highlights these dimensions.

Evidence Analysis
  • NITI Aayog's 2021 report states 25% Indians are multidimensionally poor.
  • SC/ST communities face 2x higher deprivation due to social exclusion.
Critical Evaluation

While GDP growth reduced income poverty, economic deprivation persists in informal sectors. Example: Migrant workers during COVID-19 lockdowns.

Future Implications

SDG-1 requires targeted policies like NFSA for food security and MGNREGA for livelihood.

Question 2:
Evaluate the effectiveness of Poverty Alleviation Programs in India with special focus on MGNREGA and PM-KISAN.
Answer:
Theoretical Framework

Our textbook classifies poverty programs as self-employment (PM-KISAN) and wage employment (MGNREGA) based on D.R. Gadgil's models.

Evidence Analysis
SchemeBeneficiaries (2023)Impact
MGNREGA15.4 crore73 days avg. employment
PM-KISAN11.8 crore₹6,000/yr direct transfer
Critical Evaluation

While MGNREGA reduced distress migration, delays in wage payments persist. PM-KISAN faces exclusion errors as per CAG 2022 report.

Future Implications

Integration with JAM trinity can improve targeting efficiency.

Question 3:
Explain how unequal distribution of assets contributes to chronic poverty with examples from rural India.
Answer:
Theoretical Framework

Gunnar Myrdal's circular causation theory explains how asset inequality perpetuates poverty through generations.

Evidence Analysis
  • 70% farmland owned by 20% households (NSSO 2019)
  • Landless laborers earn 47% less than marginal farmers
Critical Evaluation

Example: Bihar's musahar community remains poor due to landlessness despite state GDP growth. Asset reforms like land ceilings face implementation challenges.

Future Implications

Joint forest management and SHGs can create alternative assets as seen in Kerala's Kudumbashree model.

Question 4:
Compare absolute and relative poverty concepts using India's Tendulkar Committee and World Bank methodologies.
Answer:
Theoretical Framework

Our textbook defines absolute poverty as survival needs (Tendulkar's ₹1,000/month 2011) vs relative poverty as inequality (World Bank's $3.2/day PPP).

Evidence Analysis
ParameterTendulkarWorld Bank
Base Year20112015 PPP
Poverty % (2023)10.216.4
Critical Evaluation

Tendulkar underestimates urban costs while WB overlooks India's subsidized PDS. Example: Kerala shows lower relative poverty due to social spending.

Future Implications

NITI Aayog's MPI combines both approaches for better targeting.

Question 5:
Assess the impact of climate change on vulnerability to poverty among Indian farmers with case studies.
Answer:
Theoretical Framework

We studied IPCC's reports linking climate shocks to poverty traps through crop failures and debt cycles.

Evidence Analysis
  • 2019-2023 saw 12% rise in climate-induced farm distress (CRY report)
  • Vidarbha farmers' suicide rate increased by 18% post erratic monsoons
Critical Evaluation

Example: Odisha's coastal farmers now face 3x more cyclones than 1990s. PMFBY insurance claims settle only 65% cases (RBI 2023).

Future Implications

Climate-smart agriculture and weather-based crop insurance need scaling as per NAPCC guidelines.

Question 6:
Explain the concept of poverty line in India and discuss the major causes of poverty in rural and urban areas. Support your answer with relevant examples.
Answer:

The poverty line in India is defined as the minimum level of income required to meet the basic needs of food, clothing, shelter, and other essentials. It is calculated based on calorie consumption and expenditure. For rural areas, the poverty line is set at 2400 calories per person per day, while in urban areas, it is 2100 calories.

Causes of Poverty in Rural Areas:

  • Agricultural Dependence: Low productivity, outdated farming techniques, and lack of irrigation facilities lead to poor income.
  • Unemployment: Seasonal employment and lack of alternative livelihood options.
  • Indebtedness: Farmers often borrow money at high interest rates, leading to a debt trap.

Causes of Poverty in Urban Areas:

  • Unemployment: Lack of skilled jobs and underemployment in informal sectors.
  • High Cost of Living: Expensive housing, healthcare, and education.
  • Migration: Rural migrants often end up in slums with poor living conditions.

For example, in rural Bihar, farmers struggle due to fragmented landholdings, while in urban Mumbai, slum dwellers face high rents and low wages. Government schemes like MGNREGA and PM Awas Yojana aim to address these issues.

Question 7:
Explain the concept of poverty line in India and discuss the major causes of poverty in rural areas. Support your answer with relevant examples.
Answer:

The poverty line is a threshold income level used to identify individuals or families living in poverty. In India, it is determined based on the minimum consumption expenditure required to meet basic needs like food, clothing, and shelter. The Tendulkar Committee (2009) defined the poverty line as an expenditure of ₹816 per month in rural areas and ₹1,000 in urban areas (at 2011 prices).

Major causes of poverty in rural areas:

  • Unemployment and underemployment: Lack of stable jobs forces people into low-paying, irregular work.
    Example: Agricultural laborers often face seasonal unemployment.
  • Low agricultural productivity: Small landholdings, outdated techniques, and lack of irrigation reduce income.
    Example: Farmers in drought-prone regions struggle to grow crops.
  • Illiteracy and lack of skills: Limits access to better-paying jobs.
    Example: Many rural youth lack vocational training.
  • Social inequalities: Caste and gender discrimination restrict opportunities.
    Example: Marginalized communities often face limited access to resources.
  • Poor infrastructure: Absence of roads, electricity, and healthcare worsens living conditions.
    Example: Remote villages lack proper schools or hospitals.

Government schemes like MGNREGA and PM-KISAN aim to address these issues by providing employment and financial support.

Question 8:
Explain the concept of poverty line in India and discuss the major causes of poverty as per the latest data. Support your answer with relevant examples.
Answer:

The poverty line in India is a threshold income level used to identify individuals or families living in poverty. It is calculated based on the minimum consumption expenditure required to meet basic needs such as food, clothing, shelter, and education. As per the latest data, the Tendulkar Committee methodology is widely used, which sets the poverty line at ₹1,286 per month for urban areas and ₹1,059 per month for rural areas (as of 2026 estimates).

The major causes of poverty in India include:

  • Unemployment and Underemployment: Lack of stable jobs and low wages force people into poverty. For example, daily wage laborers often struggle to meet basic needs.
  • Population Growth: Rapid population increase strains resources, reducing per capita income. States like Bihar and Uttar Pradesh face higher poverty due to this.
  • Low Agricultural Productivity: Farmers with small landholdings often fall below the poverty line due to poor yields and lack of technology.
  • Social Inequality: Marginalized groups like Scheduled Castes and Tribes face discrimination, limiting their access to opportunities.
  • Inadequate Infrastructure: Poor healthcare, education, and transportation in rural areas perpetuate poverty cycles.

For instance, despite government schemes like MGNREGA, seasonal unemployment in villages keeps many families impoverished. Addressing these causes requires holistic policies focusing on education, skill development, and equitable growth.

Question 9:
Explain the concept of absolute poverty and relative poverty with suitable examples. How do these concepts help in understanding poverty in India?
Answer:

Absolute poverty refers to a condition where individuals lack the basic necessities required to sustain life, such as food, shelter, and clothing. It is measured using a fixed standard, often the poverty line, which is the minimum income required to meet these basic needs. For example, in India, the Tendulkar Committee defined the poverty line as an expenditure of ₹816 per month in rural areas and ₹1,000 in urban areas (2011-12 prices).

Relative poverty, on the other hand, compares the economic status of individuals or groups within a society. It highlights income inequality by identifying those who fall below a certain percentage (e.g., 50%) of the median income. For instance, a family earning significantly less than the average income in a city experiences relative poverty, even if they meet basic needs.

These concepts help in understanding poverty in India by:

  • Identifying the most vulnerable sections (absolute poverty) for targeted welfare schemes like the Public Distribution System (PDS).
  • Highlighting disparities (relative poverty) to design inclusive policies such as progressive taxation or employment guarantees.
Thus, both measures are crucial for holistic poverty alleviation strategies.

Question 10:
Discuss the major causes of poverty in India. How do economic growth and population growth influence poverty levels? Provide examples to support your answer.
Answer:

The major causes of poverty in India include:

  • Unemployment and underemployment: Lack of stable jobs forces people into low-income work.
  • Low agricultural productivity: Farmers often face crop failures due to monsoon dependence.
  • Social inequalities: Caste and gender discrimination limit opportunities for marginalized groups.
  • Inadequate education: Poor literacy rates restrict skill development.

Economic growth can reduce poverty by creating jobs and increasing incomes. For example, the IT boom in the 2000s lifted many urban families out of poverty. However, growth must be inclusive; otherwise, inequality may persist.

Population growth exacerbates poverty by straining resources. A large family size divides limited income among more members, reducing per capita availability. For instance, a daily wage earner supporting six family members faces greater hardship than one supporting three.

To mitigate these issues, India focuses on:

  • Skill development programs (e.g., Skill India Mission).
  • Population control measures (e.g., awareness campaigns).
  • Pro-poor policies (e.g., subsidized healthcare under Ayushman Bharat).

Question 11:
Explain the concept of relative poverty and absolute poverty with suitable examples. How do these concepts help in understanding poverty in India?
Answer:

The concepts of relative poverty and absolute poverty are crucial for understanding poverty dynamics. Absolute poverty refers to a condition where individuals lack basic necessities like food, shelter, and clothing, measured against a fixed standard (e.g., the poverty line). For example, in India, the Tendulkar Committee defined absolute poverty as consumption below ₹816/month in rural areas and ₹1,000/month in urban areas (2011-12).

On the other hand, relative poverty compares individuals' economic status to the broader society, highlighting inequality. For instance, a family earning ₹20,000/month in a high-income urban area may still experience relative poverty if others earn significantly more.

These concepts help analyze poverty in India by:

  • Identifying households below subsistence levels (absolute poverty)
  • Highlighting disparities between regions/groups (relative poverty)
  • Guiding targeted welfare schemes like PMAY or NFSA
Understanding both is essential for holistic policy-making.

Question 12:
Discuss the major causes of poverty in India. How do government policies like MGNREGA aim to address these causes?
Answer:

The major causes of poverty in India include:

  • Unemployment and underemployment: Lack of stable and well-paying jobs forces many into poverty.
  • Low agricultural productivity: Dependence on monsoon and outdated farming techniques reduce income for rural households.
  • Population growth: Rapid population increase strains resources and reduces per capita income.
  • Social inequalities: Caste and gender discrimination limit access to opportunities for marginalized groups.
  • Inadequate infrastructure: Poor healthcare, education, and transportation hinder economic mobility.

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) addresses these causes by:

  • Providing 100 days of guaranteed wage employment per year to rural households, reducing unemployment.
  • Focusing on asset creation like roads and irrigation systems, which improve agricultural productivity.
  • Ensuring equal wages for men and women, promoting gender equality.
  • Strengthening rural infrastructure, which indirectly supports education and healthcare access.

By addressing unemployment and rural development, MGNREGA plays a key role in poverty alleviation.

Question 13:
Analyze the role of education and skill development in reducing poverty, with reference to government initiatives in India.
Answer:

Education and skill development play a transformative role in poverty reduction by enhancing employability and income potential. Education breaks intergenerational poverty cycles by improving cognitive abilities, while skill development equips individuals with vocational competencies for better livelihoods.

Government initiatives include:

  • Samagra Shiksha Abhiyan: Ensures universal access to quality education
  • PMKVY (Pradhan Mantri Kaushal Vikas Yojana): Provides industry-relevant skill training
  • National Skill Development Corporation (NSDC): Creates sector-specific training infrastructure

For example, a study showed that vocational training under PMKVY increased wages by 15-20% for beneficiaries. Education also reduces poverty indirectly by improving health awareness and family planning. However, challenges like dropout rates and skill mismatch need addressing for maximum impact.

Case-based Questions (4 Marks) – with Solutions (CBSE Pattern)

These 4-mark case-based questions assess analytical skills through real-life scenarios. Answers must be based on the case study provided.

Question 1:
Analyze how relative poverty differs from absolute poverty using India's poverty line data (2023).
Answer:
Case Deconstruction

Absolute poverty measures minimum income for survival, while relative poverty compares income inequality. India's poverty line is ₹1,286/month (urban) and ₹1,090 (rural).

Theoretical Application
  • Absolute: 6.7% Indians below line (NITI Aayog 2023)
  • Relative: Top 10% earn 20x more than bottom 50% (Oxfam)
Critical Evaluation

Our textbook shows relative poverty persists despite GDP growth, proving inequality matters more than subsistence thresholds.

Question 2:
Evaluate Kerala's Kudumbashree program using human poverty index parameters.
Answer:
Case Deconstruction

Kudumbashree empowers women through SHGs, addressing HPI's health-education-living standards triad.

Theoretical Application
ParameterImprovement
Literacy94% (2023)
Life Expectancy75 yrs
Critical Evaluation

We studied how 4.5 million members gained assets, but coastal communities still lag in sanitation access.

Question 3:
Compare chronic poverty in Bihar vs. Maharashtra using multidimensional poverty index components.
Answer:
Case Deconstruction

MPI measures health, education, living standards. Bihar's poverty duration exceeds 15 years vs Maharashtra's 7.

Theoretical Application
  • Bihar: 51.9% MPI poor (UNDP 2023)
  • Maharashtra: 14.7% with better electrification
Critical Evaluation

Our textbook shows migration reduces chronic poverty, but Maharashtra's slums reveal urban deprivation.

Question 4:
Debate if universal basic income can replace PDS using Madhya Pradesh pilot data.
Answer:
Case Deconstruction

2011 MP experiment gave ₹300/month vs PDS' rationed grains. UBI increased savings but reduced nutrition diversity.

Theoretical Application
  • PDS: Covers 800M people
  • UBI Cost: 4.9% GDP (Economic Survey)
Critical Evaluation

We studied leakages in PDS (31% as per CAG), but UBI lacks targeted nutritional support.

Question 5:
Assess feminization of poverty through NFHS-5 data on women's asset ownership.
Answer:
Case Deconstruction

NFHS-5 shows only 38.4% women own houses vs 68.7% men, reflecting gendered poverty.

Theoretical Application
AssetWomen Owners
Land12.9%
Bank Accounts53%
Critical Evaluation

Our textbook links this to unpaid care work, but PMJDY improved financial inclusion by 22% since 2014.

Question 6:
Analyze the multidimensional poverty index (MPI) in India compared to Bangladesh using the latest data. How does asset ownership influence poverty levels?
Answer:
Case Deconstruction

India's MPI (0.069) is higher than Bangladesh's (0.104), indicating deeper deprivation. Our textbook shows MPI combines health, education, and living standards.

IndicatorIndiaBangladesh
Nutrition14%12%
Schooling22%18%
Theoretical Application
  • Asset poverty traps families in cyclical deprivation
  • Land ownership reduces vulnerability by 40% (NSSO)
Critical Evaluation

Kerala's land reforms show asset redistribution cuts poverty faster than cash transfers. However, urban slums prove asset-less populations remain excluded.

Question 7:
Evaluate two government schemes addressing chronic poverty through human capital development. Use MGNREGA and Skill India as examples.
Answer:
Case Deconstruction

Chronic poverty stems from low employability. We studied how MGNREGA provides immediate wages while Skill India enhances long-term capabilities.

Theoretical Application
  • MGNREGA increased rural wages by 23% (Economic Survey)
  • Skill India trained 1.2 crore youth in market-relevant skills
Critical Evaluation

While MGNREGA reduces seasonal poverty, Skill India's impact is delayed. Bihar shows better outcomes when both schemes combine asset creation with training.

[Diagram: Venn diagram showing overlap between schemes]
Question 8:
Compare relative poverty in urban vs rural India using consumption expenditure data. How does social exclusion amplify deprivation?
Answer:
Case Deconstruction

NSSO data shows urban poverty at 13.7% vs rural 25.7%, but cost of living adjustments narrow the gap. Our textbook defines relative poverty as exclusion from minimum living standards.

Theoretical Application
  • SC/ST households face 12% higher deprivation despite equal income
  • Mumbai slums show spatial exclusion limits service access
Critical Evaluation

Kerala's Kudumbashree proves collective action reduces social barriers better than individual subsidies. However, caste-based exclusion persists in job markets.

Question 9:
Assess how climate change intensifies transient poverty among farmers. Use Punjab and Odisha as contrasting cases.
Answer:
Case Deconstruction

Punjab's wheat yields dropped 8% due to heatwaves, while Odisha's coastal farmers face cyclones. We studied how weather shocks create temporary but severe poverty.

StateCrop LossDebt Increase
Punjab₹12,000/acre34%
Odisha₹8,500/acre41%
Theoretical Application
  • PMFBY insurance covers only 30% losses
  • Odisha's early warning systems reduced mortality but not economic damage
Critical Evaluation

Andhra's zero-budget farming shows adaptation reduces vulnerability better than compensation. However, large-scale monocultures remain at risk.

Question 10:
Analyze the multidimensional poverty index (MPI) in India using recent data. How does it differ from traditional income-based poverty measures?
Answer:
Case Deconstruction

The MPI considers health, education, and living standards, unlike income-based measures focusing solely on earnings. Our textbook shows India's MPI was 0.069 in 2023, with 16.4% population deprived.

Theoretical Application
  • MPI identifies interlinked deprivations, like malnutrition affecting education.
  • Income measures miss non-monetary aspects, e.g., access to sanitation.
Critical Evaluation
MeasureCoverage
MPIHealth, Education, Living Standards
IncomeMonetary capacity only
Question 11:
Compare absolute and relative poverty with examples from urban and rural India. Which approach better addresses inequality?
Answer:
Case Deconstruction

Absolute poverty uses fixed thresholds (e.g., ₹1,200/month), while relative poverty compares to median income. Rural areas show higher absolute poverty (25%) than urban (14%).

Theoretical Application
  • Relative poverty highlights urban slums where incomes lag behind city averages.
  • Absolute poverty targets starvation in drought-prone villages.
Critical Evaluation

Relative poverty better captures inequality as it reflects societal disparities, evidenced by Mumbai's high-income gap despite low absolute poverty.

Question 12:
Evaluate two government schemes combating chronic poverty through asset creation versus cash transfers. Use MGNREGA and PM-KISAN as examples.
Answer:
Case Deconstruction

MGNREGA builds assets like ponds, creating long-term employment. PM-KISAN provides ₹6,000/year directly to farmers.

Theoretical Application
  • Asset creation improves productive capacity (e.g., irrigation wells).
  • Cash transfers offer immediate relief but risk dependency.
Critical Evaluation

MGNREGA reduced poverty by 32% in Rajasthan (2022), showing asset-based schemes sustain impact better than one-time cash aids.

Question 13:
How does social exclusion perpetuate poverty among Scheduled Tribes? Link this to capability deprivation using forest rights and education data.
Answer:
Case Deconstruction

STs face 32% lower literacy rates (NSSO 2021) due to limited school access. Denial of forest rights restricts livelihood options.

Theoretical Application
  • Social exclusion limits Sen's capabilities like skill development.
  • Example: Tribal schools lack teachers, perpetuating low enrollment.
Critical Evaluation

Evidence shows ST households with land titles earn 40% more, proving exclusion directly impacts economic capacity.

Question 14:

Rahul, a farmer in rural Odisha, earns Rs. 150 per day but struggles to afford basic necessities like food, education, and healthcare for his family. Analyze his situation using poverty line concepts and suggest two government schemes that could help him.

Answer:

Rahul's income of Rs. 150/day falls below the poverty line (currently Rs. 176/day in rural areas as per Tendulkar Committee). This means he cannot afford the minimum calorie intake (2400 kcal in rural areas) or other essentials.


Analysis:

  • His income is insufficient for basic needs due to rising costs of food and healthcare.
  • Lack of access to education perpetuates intergenerational poverty.

Suggested Schemes:

  • PM-KISAN: Provides Rs. 6000/year to farmers for agricultural inputs.
  • NFSA (National Food Security Act): Offers subsidized grains (5kg/person/month) through PDS.
Question 15:

A study in Jharkhand found that 40% of tribal families lack access to clean water despite state poverty reduction programs. Identify two chronic poverty causes in this context and explain how asset creation can help break the cycle.

Answer:

Causes of Chronic Poverty:

  • Geographical isolation: Remote tribal areas have poor infrastructure (roads, water pipelines).
  • Social exclusion: Historical neglect limits access to government schemes.

Asset Creation Solution:

Through programs like MGNREGA:

  • Building water harvesting structures provides long-term access to clean water.
  • Creating rural roads improves connectivity to markets and healthcare.

This empowers communities with productive assets, reducing dependency on temporary aid.

Question 16:

Rahul, a farmer in rural Bihar, owns 1 acre of land but faces frequent crop failures due to unpredictable monsoons. His family of five struggles to afford two meals a day. Analyze his situation using absolute poverty and relative poverty concepts, and suggest two government schemes that could help him.

Answer:

Absolute poverty refers to the inability to meet basic needs like food, shelter, and clothing. Rahul's family falls under this category as they cannot afford two meals daily.

Relative poverty compares Rahul's income/status with others in society. Even if his income rises slightly, he may remain poor relative to urban standards.

Two schemes that could help:

  • Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): Provides ₹6,000/year to small farmers for agricultural inputs.
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): Guarantees 100 days of wage employment to reduce seasonal unemployment.
Question 17:

A survey in a Mumbai slum showed 60% of children are malnourished despite their parents working as daily wage laborers. Explain how this reflects chronic poverty and intergenerational poverty. Suggest one economic and one social measure to break this cycle.

Answer:

Chronic poverty is long-term deprivation where families like these remain poor for years due to low wages and no assets.

Intergenerational poverty occurs when poverty passes to children due to factors like malnutrition limiting their cognitive development and future opportunities.

Measures to break the cycle:

  • Economic: Skill development programs under National Urban Livelihoods Mission (NULM) to upgrade parents' employability.
  • Social: Strengthened Integrated Child Development Services (ICDS) with regular health check-ups and supplementary nutrition for children.
Question 18:
Ramesh, a daily wage laborer in rural India, earns Rs. 150 per day but struggles to afford basic necessities like food, shelter, and education for his children. Analyze his situation using the concepts of absolute poverty and relative poverty. How does his condition reflect the broader issue of poverty in India?
Answer:

Ramesh's situation is a clear example of absolute poverty, as his income of Rs. 150 per day falls below the minimum level required to meet basic needs like food, shelter, and education. The poverty line in India is defined by the government based on calorie intake and expenditure, and Ramesh's earnings likely place him below this threshold.

Additionally, his condition can also be viewed through the lens of relative poverty, as his income is significantly lower compared to the average income in society, limiting his access to resources and opportunities. This disparity highlights the unequal distribution of wealth and resources.

The broader issue of poverty in India is reflected in Ramesh's struggle, as millions face similar challenges due to factors like:

  • Unemployment or underemployment
  • Lack of access to quality education and healthcare
  • Social inequalities and caste-based discrimination
Government initiatives like MGNREGA aim to address such issues by providing employment opportunities, but systemic changes are needed for long-term solutions.

Question 19:
In a village, 30% of the population lives below the poverty line, while the rest have access to better education and healthcare. Using the concept of poverty traps, explain how this inequality might perpetuate poverty for future generations. Suggest two measures to break this cycle.
Answer:

The situation described is a classic example of a poverty trap, where the lack of resources creates a cycle that is difficult to escape. Here's how it works:

1. Limited access to education: Children from poor families often cannot afford schooling, leading to low skills and fewer job opportunities.
2. Poor health and nutrition: Inadequate healthcare reduces productivity, keeping families in poverty.
3. Low income and savings: Without savings, families cannot invest in better opportunities, reinforcing the cycle.

To break this cycle, two measures could be:

  • Universal education: Providing free and quality education ensures skill development and better employment prospects.
  • Healthcare access: Government schemes like Ayushman Bharat can improve health outcomes, increasing productivity.

Addressing these issues requires targeted policies and community involvement to ensure sustainable development and reduce inequality.

Question 20:
Rahul, a farmer in rural Odisha, earns Rs. 150 per day but struggles to afford basic necessities like food, education, and healthcare for his family. Analyze his situation using the concepts of absolute poverty and relative poverty. How does this reflect the multidimensional nature of poverty in India?
Answer:

Rahul's situation highlights both absolute poverty and relative poverty. Absolute poverty refers to the inability to meet basic survival needs like food, shelter, and clothing. Since Rahul earns only Rs. 150/day (below the poverty line), he falls under this category.

Relative poverty, on the other hand, compares his income and living standards with others in society. Even if Rahul meets minimal needs, his inability to afford education or healthcare shows he is disadvantaged compared to others.

The multidimensional nature of poverty is evident as poverty isn't just about income but also lack of access to:

  • Education: His children may miss schooling.
  • Healthcare: Family members might suffer due to inadequate medical facilities.
  • Standard of living: Poor housing and sanitation add to deprivation.
Thus, poverty is a complex issue requiring holistic solutions.

Question 21:
The government launches a scheme providing subsidized grains, free textbooks, and health camps in a poverty-stricken village. Evaluate how this intervention addresses the causes and consequences of poverty as per the vicious cycle of poverty theory.
Answer:

This government scheme tackles both the causes and consequences of poverty by breaking the vicious cycle of poverty, where low income leads to deprivation, perpetuating further poverty.

Causes addressed:

  • Subsidized grains: Reduce hunger, improving productivity.
  • Free textbooks: Enhance education, breaking illiteracy—a root cause of poverty.

Consequences mitigated:

  • Health camps: Improve well-being, reducing medical expenses that push families deeper into poverty.
  • Better education and health increase employability, enabling higher future income.

By intervening at multiple levels, the scheme disrupts the cycle where poverty leads to poor health/education, which in turn sustains poverty. This aligns with the human capital development approach for long-term poverty alleviation.

Question 22:
Rahul, a farmer in rural Odisha, owns a small piece of land but struggles to meet his family's basic needs due to erratic monsoons and lack of irrigation facilities. Analyze the situation using the capability deprivation approach and suggest two measures the government can take to alleviate his poverty.
Answer:

The capability deprivation approach, proposed by Amartya Sen, focuses on the lack of opportunities and freedoms rather than just income poverty. In Rahul's case:

  • Deprivation of basic capabilities: His inability to irrigate land or adapt to climate shocks restricts his productive freedom and income stability.
  • Lack of access: Absence of irrigation infrastructure denies him the capability to cultivate crops sustainably.

Government measures:

  • Implement micro-irrigation schemes (e.g., drip irrigation) to reduce dependency on monsoons.
  • Provide skill development programs for alternative livelihoods (e.g., poultry farming) to diversify income sources.

These steps address both resource deprivation and opportunity creation, aligning with the capability approach.

Question 23:
A survey in a Mumbai slum revealed that 60% of families earn below ₹10,000/month and lack access to healthcare. Using the multidimensional poverty index (MPI), identify three dimensions of poverty observed here and explain how improving public healthcare can reduce poverty.
Answer:

The multidimensional poverty index (MPI) evaluates poverty beyond income, focusing on overlapping deprivations. The observed dimensions are:

  • Health: Lack of healthcare access increases vulnerability to diseases, reducing productivity.
  • Living standards: Poor sanitation and overcrowding in slums exacerbate health risks.
  • Education: Children may drop out to care for sick family members, perpetuating intergenerational poverty.

Improving public healthcare:

  • Reduces out-of-pocket expenses, freeing income for other needs like nutrition.
  • Enhances workforce productivity by preventing illness-related absenteeism.
  • Breaks the poverty-illness cycle by ensuring children attend school regularly.

This aligns with MPI's holistic approach to poverty eradication.

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