Poverty and Unemployment AFCAT Questions

AFCAT Indian Economy

Poverty and Unemployment MCQ Questions


1.
'Poverty' is generally defined in economics as a condition in which a person or household:
A.
Holds a postgraduate academic degree
B.
Lacks sufficient income, consumption, or resources to afford a basic minimum acceptable standard of living
C.
Owns less than two residential properties
D.
Has never travelled outside their home country
😑 View Answer Rough Work Error
ANSWER :
B. Lacks sufficient income, consumption, or resources to afford a basic minimum acceptable standard of living
2.
'Absolute poverty' differs from 'relative poverty' mainly in that absolute poverty is defined in terms of:
A.
The number of billionaires residing in a country
B.
The total foreign exchange reserves held by a country's central bank
C.
A fixed, predetermined minimum basket of goods and services considered necessary for survival, regardless of how others in society are living
D.
How much income the richest 1% of a country earns
😑 View Answer Rough Work Error
ANSWER :
C. A fixed, predetermined minimum basket of goods and services considered necessary for survival, regardless of how others in society are living
3.
A 'poverty line' is best described as:
A.
The exchange rate at which a currency is no longer considered convertible
B.
The minimum level of income or consumption expenditure considered necessary to meet a person's basic needs, used to classify the population as poor or non-poor
C.
The geographic boundary separating a country's rural and urban areas
D.
The minimum educational qualification required to vote in elections
😑 View Answer Rough Work Error
ANSWER :
B. The minimum level of income or consumption expenditure considered necessary to meet a person's basic needs, used to classify the population as poor or non-poor
4.
The term 'BPL' (Below Poverty Line), commonly used in Indian policy discourse, refers to:
A.
A category of government employees eligible for early retirement
B.
Households or individuals whose income or consumption expenditure falls below the officially defined poverty line
C.
Companies listed below a certain rank on the Bombay Stock Exchange
D.
Banks that have been declared bankrupt by the RBI
😑 View Answer Rough Work Error
ANSWER :
B. Households or individuals whose income or consumption expenditure falls below the officially defined poverty line
5.
Historically, India's official poverty line was primarily based on which underlying concept?
A.
The distance of a household from the nearest international airport
B.
The total value of a household's gold jewellery
C.
A minimum daily calorie intake norm considered necessary for basic nutrition
D.
The number of mobile phones owned by a household
😑 View Answer Rough Work Error
ANSWER :
C. A minimum daily calorie intake norm considered necessary for basic nutrition
6.
The 'vicious cycle of poverty' concept describes a self-reinforcing pattern in which:
A.
Poverty in one country directly causes poverty in all neighbouring countries
B.
Government welfare schemes always make poverty permanently worse
C.
Low income leads to low savings and investment, resulting in low productivity, which in turn perpetuates low income, trapping individuals or economies in continued poverty
D.
High income always leads automatically to even higher income with no limit
😑 View Answer Rough Work Error
ANSWER :
C. Low income leads to low savings and investment, resulting in low productivity, which in turn perpetuates low income, trapping individuals or economies in continued poverty