Unit 11 - Issues Facing Indian Economy (JAIIB- MODULE A)
1. Which of the following is a major objective of poverty alleviation programs in India?
A. Increasing luxury consumption
B. Reducing inflation rate
C. Improving income and standard of living of the poor
D. Promoting foreign investment
Poverty alleviation programs aim to improve the income, access to resources, and overall standard of living of economically weaker sections of society.
2. The MGNREGA scheme is primarily intended to:
A. Provide microfinance to urban poor
B. Guarantee employment and livelihood security in rural areas
C. Subsidize agricultural exports
D. Promote corporate social responsibility
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides at least 100 days of wage employment per year to rural households, reducing poverty and ensuring livelihood security.
3. Jobless growth in India refers to a situation where:
A. Both GDP and employment grow at the same rate
B. Employment increases faster than GDP
C. Informal sector jobs increase but formal jobs decline
D. GDP grows but employment opportunities do not increase proportionally
Jobless growth occurs when the economy grows in terms of GDP, but this growth does not translate into proportional employment opportunities, especially in the formal sector.
4. Which sector is often associated with creating employment during jobless growth periods in India?
A. Informal sector or small-scale industries
B. Large IT corporations
C. Import-export sector
D. Stock market services
During jobless growth, employment is often generated in the informal sector and small-scale industries, whereas high-tech or capital-intensive sectors create fewer jobs.
5. Which of the following is a key challenge in poverty alleviation in India?
A. Excess foreign direct investment
B. Inadequate targeting and leakage of benefits
C. High literacy rate
D. Overproduction in agriculture
A major challenge in poverty alleviation is ensuring that benefits reach the intended beneficiaries without leakage, and programs are effectively targeted.
6. Rising inequalities in India are often measured using which of the following?
A. Gini coefficient
B. Consumer Price Index
C. GDP growth rate
D. Repo rate
The Gini coefficient is a standard measure of income or wealth inequality, with 0 representing perfect equality and 1 representing maximum inequality.
7. Which of the following factors contribute significantly to rising income inequality in India?
A. Equal land distribution
B. Universal access to education
C. High rural employment rates
D. Unequal access to education, healthcare, and high-paying jobs
Inequalities rise when opportunities such as education, healthcare, and high-paying jobs are accessible to only a section of the population.
8. Which government initiative is aimed at reducing inequalities by providing financial support to the underprivileged?
A. Startup India
B. PM Jan Dhan Yojana
C. Make in India
D. Digital India
PM Jan Dhan Yojana provides bank accounts and financial inclusion for economically weaker sections, helping reduce financial inequality.
9. Which of the following best describes wealth inequality in India?
A. Wealth is evenly distributed across all states
B. Rural areas are wealthier than urban areas
C. A small proportion of the population owns a large share of total wealth
D. All households have similar income levels
Wealth in India is concentrated among a small percentage of the population, leading to significant inequality.
10. Rising income inequality can negatively impact economic growth because:
A. It increases government revenue
B. It promotes foreign investment
C. It encourages entrepreneurship among the poor
D. Lower income groups have reduced purchasing power, limiting domestic demand
When income is concentrated in the hands of a few, the majority have limited purchasing power, which can slow down consumption-driven economic growth.
11. Rural-to-urban migration in India primarily occurs due to:
A. Availability of natural resources in villages
B. Search for better employment and living conditions in cities
C. Decline in urban population
D. Excess agricultural mechanization in cities
People migrate from rural areas to urban centers seeking better jobs, education, healthcare, and overall improved living standards.
12. One negative effect of rapid migration on urban areas is:
A. Decrease in labor force
B. Reduction in urban infrastructure
C. Overcrowding and excessive pressure on resources like housing, water, and sanitation
D. Decrease in urban employment opportunities
Rapid migration leads to increased demand for limited urban resources, causing overcrowding, slums, and strain on basic services.
13. Which of the following policies can help manage the excessive pressure on urban resources due to migration?
A. Encouraging rural-to-urban migration without planning
B. Limiting employment in rural areas
C. Reducing urban housing supply
D. Promoting balanced regional development and improving rural infrastructure
Balanced regional development and better rural infrastructure reduce forced migration by creating jobs and improving living conditions in villages.
14. Which of the following is a common consequence of excessive pressure on urban resources?
A. Growth of slums and informal settlements
B. Reduction in urban population density
C. Decrease in city traffic
D. Increase in rural job opportunities
Overcrowding due to migration often leads to the development of slums and informal housing, stressing urban infrastructure.
15. Seasonal migration occurs mainly because:
A. Permanent relocation to urban centers
B. Temporary work in agriculture or construction during peak seasons
C. Migration for higher education
D. To access banking facilities
Seasonal migration is common among workers who move temporarily to earn wages during agricultural harvests or construction booms and return home after the season ends.
16. Which of the following is an effective remedy to reduce rural-to-urban migration?
A. Increasing urban taxation
B. Limiting rural education opportunities
C. Promoting rural employment programs and infrastructure development
D. Reducing agricultural production
Providing jobs, improving rural infrastructure, and better access to education and healthcare reduces forced migration to urban areas.
17. Which government scheme focuses on skill development to reduce unemployment and improve employability?
A. Pradhan Mantri Jan Dhan Yojana
B. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
C. MGNREGA
D. Digital India
PMKVY provides training and skill development to enhance employability and reduce unemployment among youth.
18. During pandemic situations like COVID-19, which sector in India was most affected in terms of employment?
A. IT and software services
B. Banking and financial services
C. Education sector
D. Informal sector including daily wage workers and small businesses
Informal sector workers, daily wage laborers, and small businesses faced the most severe job losses during COVID-19 lockdowns.
19. Which of the following policy measures is useful to mitigate the economic impact of a pandemic?
A. Direct cash transfers and financial aid to affected individuals
B. Increasing interest rates sharply
C. Reducing public health spending
D. Imposing strict urban migration bans without support measures
Providing direct financial support and social security measures helps vulnerable populations survive economic shocks caused by pandemics.
20. Which of the following can improve economic resilience during pandemic situations?
A. Reducing digital infrastructure investment
B. Promoting only urban industrial growth
C. Strengthening healthcare, social security, and digital economy
D. Limiting rural credit access
Strong healthcare systems, social protection, and digital infrastructure increase economic resilience and reduce vulnerability during pandemics.
