Economics: November 2016

Wednesday, 16 November 2016

X_Economics_Chapter-3_Money & Credit_MCQs.

Class X Economics

Chapter – 3 Money and Credit

Practice Set - 1

Multiple Choice Questions

Q.1: Which one of the following is not an informal sector of credit?

(a) Traders (b) LIC

Q.2: Grameen Bank is a success story of

(a) India (b) Bangladesh

Q.3: Which of the following can be considered as the modern form(s) of money?

(a) Currencies (b) Drafts (c) Cheques (d) All of these

Q.4: Which of the following households constitutes the largest segment of borrowers

in the formal sector of credit?

(a) Poor households (b) Rich households

Q.5: Which one of the following authorizes money as a medium of exchange?

(a) Reserve Bank of India (b) Self Help Groups

Q.6 (CBSE 2011): What do you mean by collateral?

(a) It is the total sum of money with a person

(b) It is the things kept in the locker

(d) It is the security to a lender until the loan is repaid

Q.7: Banks do not give loans:

(a) to small farmers (b) to marginal farmers

Q.8: The exchange of goods for goods is:

(a) banker of option (b) bills of exchange

Q.9: Currency is issued by:

(a) RBI on behalf of central government (b) By president of India

Q.10: National Sample Survey Organization is:

(a) Commercial bank organization

(b) An organization of World Bank

(d) An institution responsible to collect data on formal sector credit.

Q.11: Gold mohar, a coin so named was brought in circulation by:

(a) Akbar (b) Sher Shah Suri

Q.12: Which agency is not included in informal loan sector or agency:

(a) Bank (b) Village money lender

Q.13: In SHG most of the decisions regarding savings & loan activities are taken by:

(a) Bank (b) Members

Q.14: Formal sources of credit does not include:

(a) Banks (b) Co-operatives (c) Employers (d) LIC

Q.15: Security (pledge, mortgage) against loan:

(a) Collateral (b) Token Coins (c) Promissory Note (d) Currency

Q.16: A payment made by account payee cheque means

(a) anyone can present the cheque and get payment from the bank

(b) only drawee can deposit the cheque and get credit in his bank account

(d) none of these

Q.17: There is restriction of withdrawing money in a

(a) savings account (b) current account

Q.18: Interest payment will be higher on a house loan on account of

(a) high tenure of loan (b) high rate of interest

Q.19: More money chasing less goods and services means

(a) Inflation (b) deflation

Q.20: Formal sources of credit comes from

(a) landlord (b) relatives or friends

Q.21: Which system has been replaced by ‘Money’ as a medium of exchange?

(a) Exchange System (b) Commodity System

Q.22: Which of the following does not come under modern forms of money?

(a) Currency (b) Cheque Payments (c) Demand deposits (d) Loan Payments

Q.23: Informal sources of credit does not include

(a) traders (b) relatives and friends (c) employers (d) cooperatives

Q.24: SHGs stands for

(a) Self House Groups (b) Self Help Groups

Q.25: In Sonpur village, everyone is not able to get credit from a bank because

(a) they don't want to take a bank loan

(b) banks demand collateral which everyone cannot provide

(d) none of the above

IX_Economics_Chapter-3_Poverty_Very Short and Short ans type Ques.

Class IX
Economics
Chapter - 3
Poverty as a Challenge

Questions Part -2

Ques.1. Define poverty?

Ans : Poverty is defined as inability to satisfy minimum human needs like food, clothing, shelter, pure drinking water, education, health, sanitation and electricity.

Ques.2. Who is a poor?

Ans : Any person who is deprived of minimum necessities of life such as food, clothes, shelter, pure drinking water, sanitation, education, health care, electricity and above all, employment is a poor.

Ques.3. State the different categories of poor?

Ans : (i) Absolutely poor

(ii) Very poor

(iii) Poor

Ques.4. State the different categories of non-poor?

Ans : (i) Not so poor

(ii) Middle class

(iii) Upper middle class

(iv) The rich

(v) The very rich

Ques.5. State two important types of poverty?

Ans : (i) Absolute poverty :- It includes the lack of biological necessities, such as food, water, clothing, housing and sanitation.

(ii) Relative poverty :- It refers to poverty line i.e. the minimum amount a person needs to satisfy basic needs.

Ques.6. Enumerate five characteristics of rural poor?

Ans : (i) Landless

(ii) Agricultural worker

(iii) Kutcha House made of mud and straw

(iv) Poor health

(v) No sanitation and electricity

(vi) No access to safe drinking water

Ques.7. State five features of urban poor?

Ans : (i) Hutment dwellers

(ii) Illiteracy

(iii) Irregular employment or even unemployment

(iv) Poor health

(v) No sanitation and electricity

(vi) No access to safe drinking water

Ques.8. State the consumption limit for rural and urban poor?

Ans : For rural poor – 2400 calories.

For urban poor – 2100 calories.

Ques.9. State the type of poverty that is measured on the basis of standard of living?

Ans : Relative poverty is measured on the basis of standard of living.

Ques.10. What is poverty line?

Ans : Poverty Line :- The line which divides poor and non-poor on the basis of per capita income and expenditure is called poverty line. A person is considered poor if his or her income or consumption level falls below a given “minimum level” necessary to fulfill basic needs as specified by the poverty line.

Ques.11. Is unemployment responsible for poverty?

Ans : Yes, unemployment is the main cause of poverty. That is why government aims at employment generation in the economy, especially among poors in order to eradicate poverty.

Ques.12. Why does inflation hit poor hard?

Ans : Due to inflation, price of a commodity increases and this lowers the purchasing power of the poor people. Now poors can afford even less quantity of that commodity of basic necessity at a higher price with the same low level of income.

Ques.13. Which social group is the most vulnerable to poverty?

Ans : Scheduled Tribes (STs).

Ques.14. In which state, the percentage of poor below poverty line is the highest?

Ans : Orissa with 47.15% people living below poverty line (BPL).

Ques.15. In which state the percentage of poor below poverty line is the least?

Ans : Jammu and Kashmir with 3.48% people living below poverty line.

Ques.16. State the country that has the highest percentage of population below poverty line?

Ans : Nigeria with 70.8%.

Ques.17. State five states having the highest percentage of people below poverty line?

Ans : (i) Orissa

(ii) Bihar

(iii) Madhya Pradesh

(iv) Uttar Pradesh

(v) West Bengal

Ques.18. State five states having the lowest percentage of people below poverty line?

Ans : (i) Jammu and Kashmir

(ii) Goa

(iii) Punjab

(iv) Himachal Pradesh

(v) Haryana

Ques.19. State five countries having the highest percentage of people below poverty

line?

Ans : (i) Nigeria

(ii) Bangladesh

(iii) India

(iv) Pakistan

(v) China

Ques.20. Who are the poorest of the poor?

Ans : (i) Scheduled Tribes (STs)

(ii) Urban casual labourers

(iii) Agricultural rural labourer

(iv) Scheduled Castes (SCs)

(v) victims of natural calamities

Ques.21. Give examples of self employment in rural area?

Ans : Non-farm activities such as tailoring, shop keeping, profession of gold smith, carpenter and computer services are examples of self employment in rural areas.

Ques.22. Give examples of self employment in urban area?

Ans : Shop keeping, working as middle man, fashion designing, repairing work, and other activities for which payment is not received from employer to earn a livelihood is earned.

Ques.23. Is there any relationship between poverty and unemployment?
Ans : Yes, poverty and unemployment are inter-related. One who is unemployed is at more risk to become a poor soon. Unemployment is the basic reason behind poverty which is why every plan and programme of government aiming at employment generation ultimately works effectively to combat poverty.

Ques.24. How will you differentiate between poor and non-poor on the basis of poverty line?
Ans : Those placed below poverty line are poor and those placed above the poverty line are non-poor.

Ques.25. Name the groups vulnerable to poverty in order of their percentage of vulnerability. Also mention Average Indian Poverty ratio?
Or,
Identify the social and economic groups, which are the most vulnerable to poverty in India?
Ans :

(i) Scheduled Tribes = 51%

(ii) (ii) Urban Casual Labourers = 50%

(iii) (iii) Rural Agricultural Labourers = 47%

(iv) (iv) Scheduled Castes = 43%.

Average Indian Poverty Ratio = 20%.

Social groups which include widows, orphans, old people, physically handicapped are also vulnerable to poverty.

Ques.26. State the Minimum Need Programme [MND]?

Answer : The programme to provide the articles of basic necessities at cheapest possible rates and certain social services free of cost to the masses.

IX_Economics_Chapter-3_Poverty_Long Ques-Ans.

Class IX

Chapter – 3

Poverty as a Challenge

Question-Answers Part -3

Ques.1. Describe how the poverty line is estimated in India.

Ans : In India, poverty line is measured considering the following factors required for subsistence:
1. Minimum level of food requirement 2. Clothing 3. Footwear

4. Fuel and Light 5. Education 6. Medical requirement etc.

These physical quantities are multiplied by their prices. The present formula for food requirement is based on the desired calorie requirement. On the basis of these calculations in 1999 - 2000, the poverty line in the rural areas was fixed Rs.328 per capita per month and in urban areas, it was Rs.454. People earning more than this amount were considered above poverty line and earning less than this amount were considered as living below poverty line. The minimum amount in urban area is higher than that in rural area because of higher price levels in urban areas. The minimum food requirement is measured in calories which is 2100 per person per day in urban areas and 2400 in rural areas. The minimum calorie requirement in rural area in higher as rural people are engaged in more physical work.

Ques.2. Do you think that present methodology of poverty estimation is appropriate?

Ans. The present methodology of poverty estimation does not look appropriate. It only takes one factor in view and that is the economic factor. Moreover it considers about a “minimum” subsistence level of living rather than a “reasonable” level of living.

Poverty has many dimensions. With development, the definitions of what constitutes poverty also changes. Its concept now has broadened to human poverty.

If poverty is to be removed in real sense and the people are to be brought above the poverty line, not only we need to increase their income but also, we have to provide the people with job-security, equality, social status, respect and dignity.

Ques.3. Describe poverty trends in India since 1973.

Ans : (i) As per the data, there is a substantial decline in poverty ratio in India from 55 percent in 1973 to 36 percent in 1993. There was further decline from 36 percent in 1993 to 26 percent in 2000.

(ii) Although the number of poor people remained stable (about 320 million) in the earlier two decades (1973 to 1993), there was significant reduction in the number of poors to about 260 million till 2000.

(iii) Poverty ratio always remained higher in rural areas compared to urban areas.

(iv) If the present trend continues, the people below poverty line may come down to less than 20 percent in the next few years.

Ques.4. Give an account of interstate disparities in poverty in India.

Ans : The proportion of poor is not the same in every state. Though there has been a decline in poverty in every state from the early seventies, the success rate of reducing poverty has varied from state to state. In 20 states and union territories, the poverty ratio is less than the national average of 26. In others, the poverty ratios are higher than the national average. Among these, Orrisa and Bihar continue to be the two poorest states with poverty ratios of 47 and 43 per cent respectively. Both rural and urban poverty are quite high in these states, and also in Madhya Pradesh and Uttar Pradesh.

On the other hand, states like Tamil Nadu, Andhra Pradesh, Gujarat, Kerala, Punjab, Haryana and Jammu and Kashmir and West Bengal have shown a significant decline in poverty. Improved Public distribution of food grains in Andhra Pradesh and Tamil Nadu, focus on human resource development in Kerala, high agricultural development in Punjab & Haryana and land reform measures adopted in West Bengal are some of the factors responsible for the decline in poverty in these states.

Ques.5. Describe global poverty trends.

Ans : The proportion of people in developing countries living on less than $1 per day has fallen from 28 per cent in 1990 to 21 per cent in 2001. There has been a substantial reduction in global poverty since the nineteen eighties. However, the reduction in poverty is marked with great regional differences. Due to rapid economic growth and massive investment in human resource development, poverty declined substantially in China and Southeast Asian countries.

On the other hand, in South Asian countries (India, Pakistan, Sri Lanka, Nepal, Bangladesh, Bhutan), the decline has not been as rapid. While the ratio of poverty in Latin America has remained the same, in sub-Saharan Africa, poverty has risen from 41 per cent in 1981 to 46 per cent in 2001. According to the world development report of 2001, countries like Nigeria, Bangladesh and India still have a large percentage of people living under poverty. Poverty has also resurfaced in some of the former socialist countries like Russia, where officially it was non-existent earlier.

Ques.6. Discuss the major reasons for poverty in India.

Ans : The major reasons for poverty in India are:

a) Colonial Rule: India went through a long phase of low economic development under the British colonial administration. The policies of the colonial government ruined traditional handicrafts and discouraged development of industries like textiles.

b) High growth in Population: The rapid growth of population, particularly among the poor, is considered one of the major causes behind Indian poverty. Poor people are illiterate and have traditional outlook. Hence, they are either ignorant of birth control measures or not convinced of the need of birth control. Moreover, they consider male child as an asset, that is, as a source of income and a source of security during old age.

c) Low Rate of Economic Development: The actual rate of growth in India has always been below the required level. It has been around 4 per cent since 1951. This has resulted in less job opportunities. This was accompanied by a high growth rate of population.

d) Unemployment: Another important factor that can be held responsible for the incidence of high poverty in India is the high degree of unemployment and underemployment. The job seekers are increasing at a higher rate than the increase in the employment opportunities.

e) Unequal Distribution: Although national income of India has been increasing since 1951, it was not properly distributed among different sections of the society. A large proportion of increased income has been pocketed by a few rich. They become richer. Consequently, the majority of people have to live below the poverty line.

f) Social Factors: Various social factors, viz., caste system, joint family system, religious faiths, law of inheritance, etc., have blocked the path of economic development.

Ques.7. Describe current government strategy of poverty alleviation.

Ans : Removal of poverty has one of the major objectives of Indian developmental strategy.

The current government strategy of poverty alleviation is based on two planks:

(1) Promotion of Economic Growth

(2) Targeted Anti-poverty Programmes

Some of the anti-poverty programmes undertaken by government at present are discussed below:

a) Prime Minister’s Rozgar Yojana (PMRY): Started in 1993, this programme aims to create self-employment opportunities for educated unemployed youth in rural areas and small towns.

b) Pradhan Mantri Gramodaya Yojana (PMGY): Launched in 2000, this aims to create and improve basic services like primary health, primary education, rural shelter, rural drinking water and rural electrification.

c) National Food for Work programme (NFWP): Launched in 2004 in 150 most backward districts of the country, this programme is open to all rural poor who are in need of wage employment and desired to do manual unskilled work.

National Rural Employment Guarantee Act (NREGA): This act was passed in September 2005. The act provides 100 days assured employment every year to every rural household in 200 districts. Later, the scheme will be extended to 600 districts and also one third to the proposed jobs would be reserved for women.

IX_Economics_Chapter-3_Poverty_MCQs

Class IX
Economics
Chapter - 3
Poverty as a Challenge

Multiple Choice Questions :

1. The country which has the largest single concentration of the poor people in the world is

a) China b) Pakistan c) India d) Nepal

2. Poverty as defined by World Bank implies living below

a) $1 per day b) $100 per month c) $10 per day d) $100 per day

3. For the year 2000, the poverty line for a person in urban areas in India was fixed at

a) Rs. 454 per month b) Rs. 500 per month

c) Rs. 328 per month d) Rs. 1640 per month

4. Define the statement which suggests that calories requirements in rural areas are considered to be higher than urban areas.

a) Because people in rural areas are poor.

b) Because people in rural areas are adversely affected by natural calamities.

c) Because people living in rural areas engage themselves in more physical work.

d) Because people living in rural areas arc engaged in agriculture.

5. The accepted average calorie requirement per person in urban areas in India is

a) 2200 calories b) 2000 calories c) 2300 calories d) 2100 calories

6. The poorest states in India are: i) Orissa ii) Bihar iii)Punjab iv) Haryana
a) (i) and (ii) b) (iii) and (iv) c) (ii) and (,iii) d) All (i), (ii), (iii) and (iv)

7. There is inequality of income within a family. Persons who are poorest of the poor in the family are ____________ .

(i) Women (ii) Girl (iii) Children (iv) Old people

a) (i)and(ii) b) (i)and(iii) c) All (i),(ii)and(iv) d) All are irrelevant.

8. Antyodaya Anna Yojana was launched in

a) 2003 b) 1999 c) 2000 d) 2005

9. For making comparisons between developing countries, which uniform standard (per person per day) for the poverty line is used in terms of minimum availability?
a) $1 b) $2 c) $3 d) $5

10. Every____ person in India is poor.

a) Third b) Fourth c) Fifth d) Tenth

11. In which of the following countries did poverty actually rise from 1981 to 2001?
a) Sub-Saharan Africa b) India c) China d) Russia

12. Which of the following is a social indicator of poverty laid by social scientists?
a) Increase in population b) Illiteracy level c) Caste d) Health club membership

13. Which one of the social groups is vulnerable to poverty?

a) Scheduled caste b) Urban casual labour

c) Rural agricultural households d) All of these

14. Which state has the largest percentage of poor in India?

a) Bihar b) Orissa c) Kerala d) Punjab

15. What is accepted average calories required in India in rural areas?

a) 2100 b) 2400 c) 2800 d) 2500

16. Which one is a social group from amongst the following groups largely vulnerable to poverty?

a) Rural agricultural labour households (HHs) b) Urban casual labour HHs

c) Scheduled castes & scheduled tribes HHs d) Female daily wagers

17. There has been a significant decline in poverty in the state of

a) Assam b) Bihar c) Jammu & Kashmir d) Uttar Pradesh

18. Which among the following is the method to estimate the poverty?
a) Investment Method b) Income Method c) Capital Method d) Human Method

19. Which scheme was started in 1993 to create self employment opportunities for educated unemployed youth in rural areas and small towns?

a) Rural Employment Generation Program

b) National Rural Employment Guaranty Act

c) Prime Minister Rojgar Yojna

d) Swarnajayanti Gram Swarojgar Yojna

20. Which one is not the major cause of income inequality in India?

a) Unequal distribution of land b) Lack of fertile land

c) Gap between the rich and the poor d) Increase in population

21. Which industry suffered the most during colonial period?

a) Jute b) Textile c) Indigo d) All the above

Economics

Wednesday, 16 November 2016

X_Economics_Chapter-3_Money & Credit_MCQs.

IX_Economics_Chapter-3_Poverty_Very Short and Short ans type Ques.

IX_Economics_Chapter-3_Poverty_Long Ques-Ans.

IX_Economics_Chapter-3_Poverty_MCQs

Eco Class 9 Ch-1 Story of Village Palampur

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