Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Poverty

Question:

Analyze the graph given below and answer the following questions:

In the above graph, the dotted line depicts the "Poverty line". According to you "C" will fall under which category?

Options:

Occasionally poor

Churning poor

Always poor

Usually poor

Correct Answer:

Churning poor

Explanation:

There are many ways to categorize poverty. In one such way, people who are always poor and those who are usually poor but who may sometimes have a little more money (for example casual workers) are grouped together as the chronic poor. Another group is the churning poor who regularly move in and out of poverty (for example small farmers and seasonal workers) and the occasionally poor who are rich most of the time but may sometimes have a patch of bad luck. They are called the transient poor. And then, there are those who are never poor and they are the non-poor.

The following graph will help you understand better: