Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Poverty

Question:

Which of the following statement(s) is/are not true?

  1. Poverty is not related to the nature of employment.
  2. Indebtedness is one of the most significant factors of poverty.
  3. A steep rise in the price of food grains and other essential goods intensifies the hardship and deprivation of lower-income groups. 
  4. The equal distribution of income and assets has also led to the persistence of poverty in India
Options:

A and C only

B and C only

A and D only

C and D only

Correct Answer:

A and D only

Explanation:

Poverty is closely related to the nature of employment. Unemployment or under-employment and the casual and intermittent nature of work in both rural and urban areas compel indebtedness, in turn, reinforce poverty. Indebtedness is one of the significant factors causing poverty. A steep rise in the price of food grains and other essential goods, at a rate higher than the price of luxury goods, further intensifies the hardship and deprivation of lower-income groups. The unequal distribution of income and assets has also led to the persistence of poverty in India.