Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Poverty

Question:

Match List - I with List - II.

List - I

List – II

(A)

Monthly Per Capita Expenditure

(I)

Relative poverty

(B)

Comparision of poverty among nations

(II)

Helps to identify the poor 

(C)

Measure of total number of poor people

(III)

Poverty line

(D)

Cut-off point which divides population as poor or non-poor 

(IV)

Head Count Ratio

Choose the correct answer from the options given below :

Options:

(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

(A)-(II), (B)-(I), (C)-(IV), (D)-(III)

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Correct Answer:

(A)-(II), (B)-(I), (C)-(IV), (D)-(III)

Explanation:

The government uses Monthly Per Capita Expenditure (MPCE) as proxy for income of households to identify the poor.

Relative Poverty: Comparision of poverty among nations.

When the number of poor is estimated as the proportion of people below the poverty line, it is known as ‘Head Count Ratio’.

For the purpose of defining poverty, we divide people into two categories; the poor and the non-poor and the poverty line separates the two.