MCQ
Poverty, unemployment and inflation MCQ - Practice Questions with Answers
Solve 10 Poverty, unemployment and inflation questions for RAS/RPSC preparation.
Practice questions
Q1Identify the correct statement about the Tendulkar Committee and the Rangarajan Committee.
The Tendulkar Committee report of 2009 shifted poverty estimation towards a wider consumption basket and gave more realistic weight to health and education spending along with food. They also say that the Rangarajan Committee proposed a higher poverty line in 2014, but that line was not adopted officially. Therefore, the statement about Tendulkar widening the basket is the supported statement.
Q2Which statement correctly describes the role of MGNREGA on poverty and unemployment?
MGNREGA is presented as the main employment-linked anti-poverty law. It gives rural households a legal claim to wage work, so it provides immediate income support when private employment is weak. The same notes separate this from the National Food Security Act, which concerns food-grain entitlements, and from flexible inflation targeting, which concerns CPI inflation. MGNREGA is therefore best understood here as rural wage-employment support that protects income and also fits the wider poverty-reduction policy mix.
Q3Match the unemployment type with its meaning. List I: 1. Disguised unemployment 2. Seasonal unemployment 3. Structural unemployment 4. Frictional unemployment List II: a. Skills do not match available jobs b. More people work than are actually needed c. Short gap while changing jobs d. Work is available only for certain months
Disguised unemployment is defined as a situation common in agriculture where more people work than are actually needed. Seasonal unemployment appears when work is available only for certain months. Structural unemployment arises when skills do not match available jobs. Frictional unemployment is the short gap while changing jobs. These four cues give the matching sequence disguised-excess labour, seasonal-months, structural-skill mismatch and frictional-job-change gap.
Q4Statement 1: India adopted flexible inflation targeting in 2016. Statement 2: The CPI inflation target under this framework is 4%, with a tolerance band of 2% to 6%. Which of the above statements is/are correct?
The inflation-control section states that India adopted a flexible inflation-targeting framework in 2016. It also gives the target clearly: 4% CPI inflation with a tolerance band from 2% to 6%. The word flexible means price stability remains central, but growth conditions are also considered. Since both the adoption year and the numerical target are directly supported, both statements are correct.
Q5Assertion (A): The National Food Security Act, 2013 strengthened India's food-security safety net through legal food-grain entitlements. Reason (R): Food expenses form a large part of poor household budgets, so food support protects their real purchasing power. Choose the correct answer.
The National Food Security Act, 2013 is presented as a major legal entitlement that gave food-grain support and strengthened India's food-security safety net. They also explain why this matters: food expenses form a large part of poor household budgets, and support for food protects purchasing power. Therefore, the assertion about legal entitlements is true, the reason about poor household budgets is true, and the reason directly explains the welfare logic of the Act.
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More questions
6Under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, what does a rural household demanding employment get a legal claim to?
7Match the type of unemployment with the correct example. List I: 1. Disguised unemployment 2. Seasonal unemployment 3. Educated unemployment List II: a. Degree holders are unable to find suitable work b. Too many people work on a family farm, and removing some of them does not reduce output c. Work is available only during certain months in agriculture, construction or tourism
8Assertion (A): CPI has special importance in India's inflation targeting and monetary policy. Reason (R): CPI measures retail prices faced by consumers, while WPI tracks wholesale-level prices and does not directly show what households pay in retail markets. Choose the correct answer.
9Which change is most closely associated with the Tendulkar Committee report of 2009 in poverty estimation?
10Consider the following statements. Statement 1: The Multidimensional Poverty Index looks at simultaneous deprivations in health, education and standard of living. Statement 2: A poverty line mainly measures whether minimum consumption or income is being met. Which of the above statements is/are correct?