Poverty and Inequality

Q1.Consider the following statements regarding the estimation of poverty in India: 1. The Planning Commission is the current nodal authority for publishing official poverty estimates. 2. Poverty estimates are presently compiled by the National Statistical Office (NSO). 3. The United Nations Development Programme (UNDP) is responsible for conducting the sample surveys used for poverty estimation in India. How many of the above statements are correct?

Q2.Consider the following statements regarding types of poverty: 1. Poverty that is passed down from one generation to the next, persisting for two or more generations, is termed Situational Poverty. 2. A person falling below the poverty line due to a sudden event like a natural disaster or unemployment is an example of Generational Poverty. 3. The concept of a 'poverty line' is used as a method to measure Absolute Poverty. How many of the above statements are correct?

Q3.Consider the following two statements: **Statement-I:** The Rangarajan Committee's methodology for poverty estimation was based on the monthly expenditure of a family unit of five, rather than on an individual basis. **Statement-II:** The primary reason for adopting a family-unit approach was to establish a single, uniform poverty line for the entire country, thereby eliminating the need for state-specific adjustments based on price levels. Which one of the following is correct in respect of the above statements?

Q4.Consider the following statements regarding poverty measurement indices: 1. The Head Count Ratio (HCR) is primarily used to measure the intensity of poverty by calculating the average shortfall from the poverty line. 2. The Poverty Gap Ratio helps determine the degree of poverty by squaring the shortfalls of BPL people, thereby giving more weight to the very poor. 3. The Squared Poverty Gap Index indicates the percentage of the population living below the poverty line. How many of the above statements are correct?

Q5.Consider the following statements regarding the Multi-Dimensional Poverty Index (MPI): 1. The MPI concept was developed by the World Bank to measure 'extreme' poverty, replacing the Human Poverty Index. 2. A person is considered multi-dimensionally poor if they are deprived in at least one-half of the weighted indicators. 3. In India, the National Multidimensional Poverty Index (NMPI) is released by NITI Aayog based on data from the National Sample Survey (NSS). How many of the above statements are correct?

Q6.Consider the following statements: Statement-I: In the Multi-Dimensional Poverty Index (MPI), the three dimensions of Education, Health, and Standard of Living are assigned equal weightage. Statement-II: Within the MPI framework, each indicator under the Education and Health dimensions carries three times the weight of any single indicator under the Standard of Living dimension. Which one of the following is correct in respect of the above statements?

Q7.Consider the following statements regarding poverty estimation methodologies in India: 1. The Uniform Reference Period (URP) method collects consumption data for five specific non-food items over a 365-day period and for all other items over a 30-day period. 2. The Rangarajan Committee recommended using the Modified Mixed Reference Period (MMRP) method for poverty estimation. 3. Poverty estimates derived using the Mixed Reference Period (MRP) method are consistently higher than those derived using the URP method. How many of the above statements are correct?

Q8.With reference to the Tendulkar and Rangarajan Committees on poverty estimation, consider the following statements: 1. The Tendulkar Committee used the Modified Mixed Reference Period (MMRP) method, whereas the Rangarajan Committee used the Mixed Reference Period (MRP) method. 2. The Tendulkar Committee used separate poverty line baskets for rural and urban areas, while the Rangarajan Committee used a uniform all-India urban poverty line basket. 3. For the year 2011-12, the all-India poverty ratio derived using the Rangarajan methodology was higher than the ratio derived using the Tendulkar methodology. How many of the above statements are correct?

Q9.Consider the following two statements: Statement-I: The Suresh Tendulkar Committee did not construct a new poverty line; instead, it adopted the officially measured urban poverty line of 2004–05 based on the Lakdawala methodology and adjusted it. Statement-II: The Tendulkar Committee's methodology was a continuation of the Lakdawala Committee's approach, as it also used the Uniform Reference Period (URP) for consumption data and excluded private expenditure on health and education. Which one of the following is correct in respect of the above statements?

Q10.Consider the following statements regarding the evolution of poverty estimation in India: 1. The Y.K. Alagh Task Force established different daily calorie intake norms for rural and urban areas to estimate poverty. 2. The D.T. Lakdawala Committee recommended the use of state-specific poverty lines. 3. The shift from a consumption expenditure-based poverty line to an income-based poverty line is recommended because consumption patterns are more irregular than income for most households. How many of the above statements are correct?

Q11.Consider the following statements regarding committees for the identification of Below Poverty Line (BPL) families in India: 1. The N.C. Saxena Committee was constituted by the Ministry of Rural Development to recommend a methodology for conducting the BPL Census in urban areas. 2. The S.R. Hashim Committee recommended a three-stage identification process, including automatic exclusion and inclusion, for BPL families in rural areas. 3. A key recommendation of the N.C. Saxena Committee was to revise the percentage of people entitled to BPL status in India to at least 50 per cent. How many of the above statements are correct?

Q12.Consider the following statements: Statement-I: The Sen Index of Poverty offers a more comprehensive measure than the simple Head Count Ratio by accounting for the level of inequality among the poor. Statement-II: The mathematical formulation of the Sen Index incorporates the Gini Coefficient, a standard measure of statistical dispersion intended to represent income or wealth inequality. Which one of the following is correct in respect of the above statements?

Q13.With reference to Amartya Sen's Capability Approach, consider the following statements: 1. It primarily encourages the expansion of government welfare programs to enhance people's well-being. 2. It has been criticized for being overly collectivistic and ignoring individual agency. 3. It posits that development should be viewed as a process of creating an enabling atmosphere for people to achieve valuable functioning. How many of the above statements are correct?

Q14.Consider the following statements regarding Universal Basic Income (UBI): 1. UBI is designed with a means test to ensure that payments are targeted only to individuals below a certain income threshold. 2. The disbursement of cash payments under UBI is conditional upon the fulfillment of a work requirement by the recipient. 3. The Economic Survey 2016-17 estimated that implementing UBI would cost more than the total expenditure on all existing welfare schemes combined. How many of the above statements are correct?

Q15.Consider the following two statements: Statement-I: A primary rationale for Universal Basic Income (UBI) is its potential to replace a large number of existing welfare schemes, thereby simplifying administration and reducing leakages. Statement-II: The successful implementation of a nationwide UBI scheme is considered to be contingent upon a pre-existing and effectively functional JAM (Jan Dhan, Aadhar, Mobile) infrastructure. Which one of the following is correct in respect of the above statements?

Q16.With reference to income inequality, consider the following statements: 1. Political instability in a nation is a primary cause of rising income inequality. 2. High inflation in goods and services is a measure taken by the government to combat income inequality. 3. A progressive taxation system under direct tax is a measure taken by the government to combat income inequality. How many of the above statements are correct?

Q17.Consider the following statements: Statement-I: A focus on capital-intensive ways of production is identified as a cause of income inequality. Statement-II: Promoting labour-intensive sectors is a suggested measure to reduce income inequality. Which one of the following is correct in respect of the above statements?

Q18.Consider the following statements regarding measures to combat income inequality: 1. The government uses the MRTP Act as the primary legislation to control monopolies and restrictive trade practices. 2. Re-introducing inheritance tax is a suggested measure to reduce inequality by taxing the super-rich. 3. Employment generation schemes like MGNREGA are a measure taken by the government to combat income inequality. How many of the above statements are correct?

Q19.Consider the following statements regarding the measurement of income inequality: 1. The Lorenz Curve is a mathematical measure of income inequality, while the Gini Coefficient is its graphical representation. 2. A Gini Coefficient value of 1 represents a state of perfect equality, where every resident has the same income. 3. The Hoover Index is equal to the percentage of the total population's income that would have to be redistributed to achieve perfect income equality. How many of the above statements are correct?

Q20.Consider the following statements: Statement-I: An increase in a country's Gini Coefficient from 0.29 to 0.36 indicates a worsening of income distribution. Statement-II: As the Gini Coefficient increases, the Lorenz curve moves closer to the line of perfect equality. Which one of the following is correct in respect of the above statements?

Q21.Consider the following statements regarding wealth and income inequality: 1. The real growth rate of average income in India was higher during the period 1960-1990 as compared to 1990-2022. 2. The World Inequality Report 2022 identifies Europe as the world's most unequal region based on the income share of the top 10 percent. 3. Among major economies such as the UK, France, China, US, India, Brazil, and South Africa, India has the second-highest concentration of wealth with its top 1% population.

Q22.With reference to reports on inequality in India, consider the following statements: 1. The UNDP's 2023/24 report on Human Development concluded that income inequality in India today is worse than it was during the British rule. 2. The World Inequality Lab report highlights that the share of adults filing income tax returns in India has grown to 9% in the last decade, up from below 1% until the 1990s. 3. According to the World Inequality Lab, the wealth share of India's top 1% has more than tripled between 1961 and 2023.

Q23.With reference to poverty alleviation strategies and estimation methodologies in India, consider the following statements: 1. The 'graduation approach' to poverty alleviation, pioneered in India, primarily focuses on providing conditional cash transfers to ultra-poor families. 2. The first systematic assessment of poverty in post-independence India, which utilized National Sample Survey (NSS) data, was conducted by the Dandekar and Rath Committee. 3. Currently, the official poverty estimates in India are compiled and released by the NITI Aayog. How many of the statements given above are correct?

Q24.With reference to the recent trends in household consumption expenditure in India, consider the following statements: 1. The gap between rural and urban monthly per capita consumption expenditure has widened. 2. The proportion of expenditure on food items in the total consumption basket has decreased in both rural and urban areas. 3. Consumption inequality, as measured by the Gini coefficient, has increased in both rural and urban sectors. How many of the statements given above are correct?

Q25.With reference to the concept of Universal Basic Income (UBI) in the context of the Indian economy, consider the following statements: 1. Implementation of a Universal Basic Income, by boosting aggregate demand, is likely to decrease the overall inflationary pressures in the economy. 2. A key rationale for UBI is to replace the administrative complexities and leakages associated with multiple in-kind subsidy schemes. 3. The 'universality' principle of UBI implies that payments are made only to individuals below a designated poverty line, excluding others. How many of the statements given above are correct?

Q26.With reference to the evolving political economy, consider the following statements regarding the impact of Artificial Intelligence (AI) on state-capital relations: Statement-I: The proliferation of AI technologies tends to make capital more territorially anchored and infrastructure-dependent, reversing the trend of 'footloose' capital seen in earlier globalization phases. Statement-II: This shift incentivizes a closer alliance between the state and capital, driven by imperatives of national security and the development of sovereign technological capabilities. Which one of the following is correct in respect of the above statements?

Q27.Consider the following statements regarding economic inequality in India: 1. Post-liberalization, the real growth rate of average income has been consistently lower than the pre-liberalization period. 2. The share of national wealth held by the top 1% of the population has seen a continuous decline since independence. 3. Recent data from international organizations suggest a reduction in the income Gini coefficient for India. How many of the statements given above are correct?

Q28.With reference to the state's role in the digital economy, consider the following statements: 1. The concept of 'techno-nationalism' involves the state shifting from a passive regulatory role to an active co-investor to build sovereign technological capacity. 2. Digital Public Infrastructure (DPI) is primarily designed to create state-owned monopolies, excluding private firms from leveraging foundational digital resources. 3. The convergence of state surveillance and corporate data analytics marks a blurring of boundaries between public security and private commercial interests. Which of the statements given above are correct?