Q.1 Which of the following is a direct measure of poverty?
Income level
Gini coefficient
Human Development Index
Lorenz Curve
Explanation - Direct measures of poverty typically examine individual or household income to determine if it falls below the poverty line.
Correct answer is: Income level
Q.2 Which index measures income inequality in a population?
Poverty Gap Index
Gini coefficient
GDP per capita
Human Poverty Index
Explanation - The Gini coefficient quantifies income inequality on a scale from 0 (perfect equality) to 1 (perfect inequality).
Correct answer is: Gini coefficient
Q.3 Unemployment that occurs due to seasonal demand in agriculture or tourism is called:
Frictional unemployment
Structural unemployment
Cyclical unemployment
Seasonal unemployment
Explanation - Seasonal unemployment arises when people are temporarily unemployed during off-seasons of certain industries like agriculture or tourism.
Correct answer is: Seasonal unemployment
Q.4 Which type of unemployment occurs when workers are between jobs or entering the workforce?
Cyclical
Frictional
Structural
Disguised
Explanation - Frictional unemployment is temporary and occurs when workers are transitioning between jobs or starting their careers.
Correct answer is: Frictional
Q.5 The Lorenz Curve is used to:
Measure poverty
Measure unemployment
Represent income distribution
Calculate GDP growth
Explanation - The Lorenz Curve graphically represents the cumulative distribution of income or wealth among a population.
Correct answer is: Represent income distribution
Q.6 The poverty line is defined as:
Income level to afford basic needs
Average national income
Minimum wage
Gini coefficient value
Explanation - The poverty line represents the minimum income required for a household to meet basic food, shelter, and clothing needs.
Correct answer is: Income level to afford basic needs
Q.7 Which of the following is an example of structural unemployment?
A software engineer laid off due to automation
A teacher between jobs
A farmworker during winter
Workers laid off during a recession
Explanation - Structural unemployment occurs when there is a mismatch between workers’ skills and the job requirements, often due to technological changes.
Correct answer is: A software engineer laid off due to automation
Q.8 Human Poverty Index (HPI) focuses on:
Income inequality
Basic human deprivation
Labor force participation
Industrial growth
Explanation - HPI measures poverty beyond income, including life expectancy, literacy, and access to basic services.
Correct answer is: Basic human deprivation
Q.9 Which of the following policies is most directly aimed at reducing income inequality?
Progressive taxation
Trade liberalization
Monetary tightening
Privatization
Explanation - Progressive taxes levy higher rates on higher incomes, thereby reducing income disparities.
Correct answer is: Progressive taxation
Q.10 Disguised unemployment is commonly found in:
Urban IT sectors
Rural agriculture
Manufacturing industries
Tourism
Explanation - Disguised unemployment occurs when more workers are employed than necessary, often seen in rural agricultural areas.
Correct answer is: Rural agriculture
Q.11 Which of the following represents cyclical unemployment?
Workers laid off during an economic recession
Workers between jobs
Workers replaced by machines
Seasonal tourism workers
Explanation - Cyclical unemployment rises during economic downturns and falls during expansions.
Correct answer is: Workers laid off during an economic recession
Q.12 The poverty gap index measures:
Depth of poverty
Income inequality
Labor force participation
Unemployment rate
Explanation - The poverty gap index reflects how far below the poverty line the average poor person’s income falls.
Correct answer is: Depth of poverty
Q.13 Which factor is considered a structural cause of unemployment?
Technological changes
Seasonal fluctuations
Job transitions
Economic recession
Explanation - Technological advancements can make certain skills obsolete, leading to structural unemployment.
Correct answer is: Technological changes
Q.14 Which of the following statements best describes relative poverty?
Living below a minimum income needed for survival
Income below the national average
Being unemployed temporarily
Disguised unemployment in rural areas
Explanation - Relative poverty refers to being poorer compared to the average standard of living in a society, not absolute survival needs.
Correct answer is: Income below the national average
Q.15 Which of the following is considered a direct policy tool to reduce unemployment?
Public works programs
Gini coefficient measurement
Human Development Index calculation
Trade liberalization
Explanation - Governments create jobs through public works to directly reduce unemployment levels.
Correct answer is: Public works programs
Q.16 Which type of unemployment is often long-term due to skill mismatch?
Structural
Frictional
Cyclical
Seasonal
Explanation - Structural unemployment occurs when workers’ skills do not match job requirements, making it persistent and long-term.
Correct answer is: Structural
Q.17 Income inequality can be reduced by:
Progressive taxation and social welfare programs
Reducing labor force participation
Increasing monopolies
Trade restrictions
Explanation - Redistributive policies, including progressive taxation and welfare, help reduce income inequality.
Correct answer is: Progressive taxation and social welfare programs
Q.18 The concept of 'underemployment' refers to:
Working less than desired or using fewer skills than available
Being unemployed temporarily
Unemployment due to recession
Workers between jobs
Explanation - Underemployment occurs when workers are employed below their skill level or part-time involuntarily.
Correct answer is: Working less than desired or using fewer skills than available
Q.19 Which of the following is an indirect measure of poverty?
Income below poverty line
Nutritional intake
Household consumption
All of the above
Explanation - Indirect measures of poverty assess living standards, consumption, and nutrition rather than just income.
Correct answer is: All of the above
Q.20 High unemployment and poverty are typically associated with:
Underdeveloped economies
Developed economies
Service sector growth
Technological innovation
Explanation - Underdeveloped economies often face structural challenges leading to high poverty and unemployment.
Correct answer is: Underdeveloped economies
Q.21 Which of the following best describes absolute poverty?
Inability to meet basic food, clothing, and shelter needs
Being poorer than the national average
Long-term unemployment
Income inequality measurement
Explanation - Absolute poverty refers to a lack of basic necessities for survival.
Correct answer is: Inability to meet basic food, clothing, and shelter needs
Q.22 The Kuznets curve is related to:
Income inequality and economic development
Unemployment cycles
Poverty line estimation
Seasonal employment
Explanation - The Kuznets curve hypothesizes that income inequality first rises and then falls with economic development.
Correct answer is: Income inequality and economic development
Q.23 Which of the following is a social consequence of unemployment?
Increased crime rates
Higher income equality
Technological progress
Increased labor productivity
Explanation - Unemployment can lead to social issues like crime, poverty, and mental health problems.
Correct answer is: Increased crime rates
Q.24 Which government program is designed to provide employment to rural poor in India?
MGNREGA
GST
Make in India
PM-KISAN
Explanation - The Mahatma Gandhi National Rural Employment Guarantee Act provides guaranteed wage employment to rural households.
Correct answer is: MGNREGA
Q.25 Which measure helps to understand both poverty and inequality together?
Human Development Index
Poverty-inequality index
Gini coefficient
Unemployment rate
Explanation - The Poverty-inequality index combines data on poverty levels and income distribution to provide a fuller picture of social disparity.
Correct answer is: Poverty-inequality index