MCQ
Poverty, unemployment, inflation and inclusive growth MCQ - Practice Questions with Answers
Solve 10 Poverty, unemployment, inflation and inclusive growth questions for RAS/RPSC preparation.
Practice questions
Q1Assertion (A): NITI Aayog's National Multidimensional Poverty Index treats poverty as capability deprivation, not merely low income. Reason (R): Its dimensions include health, education and standard of living, with indicators such as nutrition, schooling, electricity, housing, assets and bank account access. Choose the correct answer.
The assertion is supported because modern poverty analysis adds health, education and living standards to income, and the exam handle is that MPI asks which basic capabilities are missing. The reason is also supported: NITI Aayog's National MPI follows three dimensions, with indicators such as nutrition, schooling, cooking fuel, sanitation, drinking water, electricity, housing, assets and bank account access. Those indicators are exactly why the index captures capability deprivation rather than only money or consumption.
Q2Which one of the following statements is incorrect on anti-poverty instruments and inclusive growth?
The incorrect statement is the description of MGNREGS as an ordinary department scheme without a demand-driven guarantee. The opposite: the 2005 law gives every rural household demanding work a legal claim to up to 100 days of unskilled manual work in a financial year. The food-grain quantities are also correct: 5 kg per person per month for priority households and 35 kg per household per month for Antyodaya households. The inclusive-growth statement is correct because it links growth with jobs, human capital, financial inclusion, social protection and regional balance.
Q3Match List I with List II on inflation concepts: List I: 1. CPI 2. WPI 3. Core inflation 4. Demand-pull inflation List II: a. Retail-price measure important for household welfare and monetary policy b. Wholesale-price measure useful for producer-side trends c. Measure that usually excludes food and fuel d. Price rise when aggregate demand exceeds supply Choose the correct match.
The measures and causes of inflation are distinct. CPI tracks retail inflation and matters most for household welfare and RBI's monetary-policy framework. WPI records wholesale prices and is useful for producer-side trends, but it is not the target variable for inflation targeting. Core inflation usually excludes food and fuel to reveal underlying price pressure. Demand-pull inflation arises when aggregate demand exceeds supply. These definitions produce the match CPI-retail welfare, WPI-wholesale producer trends, core-excluding food and fuel, and demand-pull-demand above supply.
Q4Consider the following statements about unemployment indicators: Statement 1: The Labour Force Participation Rate shows the share of the population working or seeking work. Statement 2: The Worker Population Ratio shows the share of the labour force without work but seeking it. Which of the statements is/are correct?
The Labour Force Participation Rate is defined as the share of the population working or seeking work, so the first statement is correct. The Worker Population Ratio is different: it shows the share of the population actually employed. The second statement instead gives the unemployment rate, which is the share of the labour force without work but seeking it. The cue is the denominator: population for WPR, labour force for unemployment rate. Therefore only the LFPR statement is correct.
Q5Which feature makes MGNREGS a rights-based rural safety net rather than an ordinary departmental scheme?
MGNREGS was enacted through the 2005 law and is demand-driven. Its distinctive feature is a legal claim for every rural household that demands work: up to 100 days of unskilled manual work in a financial year. This is why it is described as a rights-based rural safety net. Cash transfers, skill certificates and food-grain entitlements belong to other welfare instruments, while MGNREGS directly bridges poverty and employment through wage work and rural asset creation.
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6Consider the following statements about poverty measurement in India: Statement 1: The Lakdawala Committee kept state-specific poverty lines. Statement 2: The Tendulkar Committee widened the consumption basket and gave the official 2011-12 head-count ratio of 21.9%. Statement 3: The Rangarajan Committee proposed a higher poverty line than Tendulkar, but it was not adopted officially. Which of the statements given above are correct?
7Which one of the following statements about the National Food Security Act, 2013 and food security instruments is incorrect?
8Assertion (A): Inclusive growth is broader than GDP growth because it asks who benefits from growth, not only how fast output rises. Reason (R): Inclusive growth links output expansion with jobs, human capital, financial inclusion, social protection and regional balance. Choose the correct answer.
9Match List I with List II: List I: 1. Consumer Price Index 2. Wholesale Price Index 3. Core inflation 4. Flexible inflation targeting List II: a. Excludes food and fuel to show underlying price pressure b. Records wholesale prices and producer-side trends c. Retail inflation measure relevant for households and monetary policy d. CPI target of 4% with a 2% to 6% tolerance band Which code is correct?
10Which statement best captures the change introduced by the Tendulkar Committee in India's official poverty estimation?