NCERT Solutions for Class 11

Economics

Chapter 04-Poverty

1. Why is calorie-based norm not adequate to identify the poor?

Ans. The reasons given below describe why the calorie-based norm is not
adequate to identify the poor.

● It places all needy people under the category of poor. Thus, it is unable to
classify among the people considered as poor. It does not indicate who is
the most in need compared to others.

● A person’s calorie- intake does not reliably signify his/her economic

condition. It also does not take the availability of health care, sanitation,
drinking water, etc. under consideration.

● Monthly Per Capita Expenditure is taken as the measure of income which

does not give a proper picture of calorie requirement and calorie intake.

● It does not take account of social factors such as lack of resources, not
having civil and political rights, etc. which increase poverty or make it
worse.

2. What is meant by 'Food for Work' programme?

Ans. In the year 1977 , the ‘Food for Work’ programme was first introduced in
India to generate employment opportunities for unskilled labourers. They were
placed to work on infrastructural development works such as road construction,
watershed development, etc. etc. and were paid in terms of food grains. The
programme was revived in 2004 by the Ministry of Rural Development and
launched as the National Food for Work Programme in 150 backward districts of
the country. The focus of this programme was to keep the purchasing power of
the poor community and facilitate socio-economic development among backward

Class XI Economics www.vedantu.com 1

classes.

3. Why are employment generation programmes important in poverty

alleviation in India?

Ans. In the process of poverty alleviation, employment generation programmes

are important because—

● Employment and poverty alleviation are directly proportional: An

employed person is capable of meeting the basic needs of himself and his
family. He is also capable of generating income-earning assets. Thus,
employment opportunities can help an unemployed person to lift from the
poverty line.

● Better living standard: With new employment opportunities, the per capita
income of a society rises which allows the poor to enjoy a better standard of
living, access to education, health care, sanitation, clean drinking water, etc.
basic amenities.

● Reduction in migration: Poor people tend to move from place to place for
earnings. Large scale migration to urban areas often leaves villages in ruined
states. Forming enough income opportunities, improving agricultural system
and production can reduce rural to urban migration. The government needs to
employ positive employment opportunities and develop infrastructure in the
rural area to prevent poverty trodden people from migrating.

● Infrastructural development: In poor regions of the country, the government

needs to generate work through infrastructural development such as road
building, water harvesting, watershed development, irrigation canal
formation, dam building etc. These steps not only bring in employment but
also connect the rural to the urban areas. These are also known as durable
assets which perform a higher role in the socio-economic development of the
country. These assets also provide self-sufficiency in poverty-ridden areas.

● Skill development: To improve income opportunities, the government has to

create and support skill development programs that will help to form human
capital by increasing knowledge and skills. The poor, unskilled labourers will

Class XI Economics www.vedantu.com 2

 be able to get better work opportunities through this and thus industrial and
service sectors will also be benefitted.

● Decrease of disguised unemployment The agricultural sector of the Indian

economy has been the source of disguised unemployment, where the total
production does not directly depend upon the number of employed people.
Thus, the actual data of the employed person is not always clear. Thus, the
importance of an employment generation programme is relevant to reduce
disguised unemployment. Through such programmes, excess labourers can be
utilised effectively reducing the load on the agricultural sector.

4. How can creation of income-earning assets address the problem of

poverty?

Ans. Income-earning assets address the problem of poverty in the following

manners—

● The assets owned and regulated by the members of a family, such as land,
house, skill, capital etc. are called income-earning assets. These assets provide
employment prospects for the poor and eventually help in raising his/her
standard of living.

● Poverty in society comes from inequality of income which evolves from

improper dispersal and access to income-earning assets.

● Along with this, the unavailability of basic requirements of life, such as

healthcare, education, proper shelter and access to modern technologies at the
workplace, can limit the potential earning of a poor person.

● Thus, to assuage the issue of poverty measures to generate income-earning

assets among poor people is important.

● Some of such measures include providing monetary assistance, land

allocation, home allocation, access to easy credit, accessible healthcare,
education, skill development training, etc.

● All of these measures allow improvement of earning opportunities and

increase earning abilities which are contributive to the mitigation of poverty.

Class XI Economics www.vedantu.com 3

5. The three-dimensional attack on poverty adopted by the government has
not succeeded in poverty alleviation in India. Comment.

Ans. The three-dimensional approaches undertaken by the government to

alleviate poverty in India are—

● Trickle-down Approach: Here the positive results of economic growth

will trickle down and benefit everyone especially the poor section of the
society.

● Poverty Alleviation Approach: Here the aim is to create employment

opportunities and generation of income-earning assets.

● Ensuring availability of basic amenities: Here the aim is to help the poor
receive easy access to food, water, sanitation, healthcare education, shelter,
etc.

Even though the above measures were taken to alleviate poverty in India, the
results had not been fruitful. Following conclusions can be drawn from the results
received till now.

● Even though the percentage of people living in absolute poverty has

reduced, a large number of people still do not receive basic amenities.

● The programmes for the generation of income-earning assets have not been
very successful.

● Other than Kerala and West Bengal land reforms have not provided much
success in other states.

● Inequality in income from land resources is yet to resolve.

● Lower generation of capital, unavailability of easy credit, modern

techniques, access to information, market resources, etc., has blocked the
progress of small enterprises.

● Lack of motivation and bureaucratic hindrance, corruption, etc. has caused

hindrance in the implementation of poverty alleviation programmes.

Class XI Economics www.vedantu.com 4

6. What programmes has the government adopted to help the elderly people
and poor and destitute women?

Ans. The government has implemented numerous programmes to assist elderly

people and poor and destitute women. National Social Assistance Programme, is
one of such measures taken up by the central government. This programme is
aimed towards aged citizens, widows and poor and destitute females who have
none to look after them. Under this programme, the said focus group are provided
monthly pensions to ensure a proper livelihood.

7. Is there any relationship between unemployment and poverty? Explain.

Ans.

● Unemployment and poverty run hand in hand, thus, a direct relationship is

present between these. An unemployed person cannot get resources for
living a comfortable life for himself or his family. Thus, they lack quality
health care, education and cannot generate income-earning assets.
Unemployment brings debt to the person. All these add up to increase
poverty.

● The government has to take initiative in creating new work opportunities

to remove poverty. The income graph of the country will rise when the
number of employed people will increase.

● The availability of education, health care, and improvement of basic

infrastructure will help people to create income-earning assets. The
combined effort will lessen poverty in society.

Thus, we can say poverty and unemployment are directly proportional to each
other while both have negative impacts on society.

8. Suppose you are from a poor family and you wish to get help from the
government to set up a petty shop. Under which scheme will you apply for

Class XI Economics www.vedantu.com 5

assistance and why?

Ans. I would apply under the government programme named Prime Minister's
Rozgar Yojana (PMRY), to receive financial assistance for setting up a petty
shop. This programme helps educated, unemployed youth from a low-income
background in both rural and urban regions to start small enterprises which not
only can sustain the person’s livelihood but also be capable of generating
employment. Another government-run programme is Rural Employment
Generation Programme (REGP) focused on similar rural India.

9. Illustrate the difference between rural and urban poverty. Is it correct to

say that poverty has shifted from rural to urban areas? Use the trends in the
poverty ratio to support your answer.

Ans. The differences between rural and urban poverty are given below.

Rural Poverty Urban Poverty

Lower living standards due to very Comparatively higher income and

low income. better living standard.

Access to education, skill generation is Comparatively better access to

poor. education and skill development
opportunities.

Lack of health facilities and medical Opportunities to receive health

information. facilities and medical facilities are
present.

Employment opportunities are limited. Employment opportunities are

comparatively higher.

Migration from rural to urban areas Migration is not observed; thus it is

was observed. permanent.

Yes, poverty is often observed to shift from rural to urban areas. Many people
come to the urban areas in search of employment from villages. Without proper

Class XI Economics www.vedantu.com 6

skills and education, the availability of jobs becomes scarce to them and thus they
add to the rising poverty line in the urban areas. The following table bearing the
data on increasing poverty in urban areas will give us a clearer picture of this.

Year Poverty ratio

Rural (%) Urban (%) Total(%)

1973 −1974 56.4 49.0 54.9

1977 − 1974 53.4 45.2 50.3

1983 45.6 40.8 44.5

1987 − 1988 39.1 38.2 38.9

1993 −1994 37.3 32.4 36.0

1999 − 2000 27.1 23.6 26.1

2007 − 2005 28.3 25.7 27.5

(comparable with
1993 −1994 )

[Soruce: Planning Commission Estimates, (uniform reference period)]

These data prove that while total poverty has comparatively lowered, the decline
in urban poverty was not that significant and has comparatively risen in recent
years.

10. Suppose you are a resident of a village, suggest a few measures to tackle
the problem of poverty.

Ans. As a resident of a village, the measures I would suggest to tackle the issue
of poverty are listed below.

● Documentation of the individuals or families living in poverty.

Class XI Economics www.vedantu.com 7

 ● Access to basic needs of life, such as food, clean water, health care,
education.

● Equal distribution of income-earning assets.

● Providing employment opportunities and easy access to means for starting

a small enterprise.

● Providing an opportunity to develop skills among youth and motivate them

to acquire knowledge and information for the betterment of their future.

● Improving agricultural practices and raising the production of agricultural

products.

● Providing infrastructural development.

● Spreading awareness regarding population increase and its downfall.

Class XI Economics www.vedantu.com 8