Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Poverty

Question:

Match the following:

1. Usually poor A.Transient poor
2. Churning poor B.Proxy for income of households to identify poor
3. Never poor C.Chronic poor
4. Monthly per capita expenditure D.Non-poor

 

Options:

1- A, 2- C, 3- D, 4- B

1- B, 2- C, 3- D, 4- A

1- C, 2- A, 3- D, 4- B

1- C, 2- A, 3- B, 4- D

Correct Answer:

1- C, 2- A, 3- D, 4- B

Explanation:

The correct answer is option 3: 1- C, 2- A, 3- D, 4- B

1. Usually poor C.Chronic poor
2. Churning poor A.Transient poor
3. Never poor D.Non-poor
4. Monthly per capita expenditure B.Proxy for income of households to identify poor

There are many ways to categorise 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 (example: casual workers) are grouped together as the chronic poor. Another group are the churning poor who regularly move in and out of poverty (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 government uses Monthly Per Capita Expenditure (MPCE) as a proxy for the income of households to identify the poor.