When was the Planning Commission set up?

The correct answer is A, 1956. Parliament passed the Life Insurance Corporation Act in 1956, and the Life Insurance Corporation of India began work on 1 September that year, after the life insurance business of 245 private insurers and provident societies was taken over and merged into it. The aim was to carry insurance into the villages and to give policyholders the security of a sovereign guarantee on their savings. LIC is headquartered in Mumbai and its motto is Yogakshemam Vahamyaham. General insurance was nationalised much later, in 1972, and the regulator IRDAI was set up in 1999. B is wrong because in 1948 life insurance was still entirely in private hands. C is wrong because by 1971 LIC had already been working for fifteen years. D is wrong because 1965 also falls after the Act, not in the year it was passed. Exam tip: LIC Act 1956, LIC began 1 September 1956; general insurance nationalised 1972, IRDAI 1999.

The correct answer is D, Gujarat. Amul grew out of the Kaira District Co-operative Milk Producers' Union, started at Anand in Gujarat in 1946 when the farmers of Kheda district organised against the low prices paid to them by middlemen. Tribhuvandas Patel led the farmers and Verghese Kurien built the dairy into a modern enterprise, so that milk from lakhs of small producers could be collected, chilled, processed and sold under one brand. The Anand pattern was carried across the country through Operation Flood from 1970, which made India the largest milk producer in the world, and Kurien is remembered as the father of the White Revolution. A is wrong because Delhi is a market for milk, not the home of the cooperative. B is wrong because Karnataka's cooperative brand is Nandini. C is wrong because Uttar Pradesh produces a great deal of milk but Amul did not begin there. Exam tip: Amul — Anand in Gujarat, 1946; Operation Flood 1970 under Verghese Kurien.

The correct answer is A, disguised unemployment. Disguised unemployment is the situation in which more people work at a job than it actually needs, so taking some of them away would not reduce output at all. Indian agriculture is the standard example: a family holding of two hectares may keep five or six members busy when two could finish the same work, and the extra hands live on a share of the produce without adding to it. Their marginal productivity is close to zero, which is why the unemployment is called hidden or disguised. NCERT's Class 9 economics chapter on people as resource uses this very example. B is wrong because seasonal unemployment means being idle only in certain months, such as between sowing and harvest. C is wrong because structural unemployment comes from a mismatch between the skills workers have and the jobs the economy creates. D is wrong because marginal unemployment is not a standard category of this kind. Exam tip: disguised unemployment means surplus workers with nearly zero marginal productivity.

The correct answer is B, health, education and standard of living. The index counts a household as poor when it suffers deprivation in enough of the indicators grouped under these three heads, such as nutrition and child mortality under health, years of schooling and attendance under education, and cooking fuel, sanitation, drinking water, electricity, housing and assets under standard of living. Option A is wrong because the index is built precisely to look beyond income and savings, which a consumption-based poverty line already covers. Option C is wrong because food, clothing and shelter are the traditional basic needs, and although they are related to the indicators used, they are not the names of the three dimensions. Option D is wrong because agriculture, industry and services are the sectors of the economy and have nothing to do with measuring household deprivation.

The correct answer is B, the proportion of the population below the poverty line. The head count ratio simply counts how many people fall below the line and divides that by the total population, which makes it easy to understand and easy to compare across states. Option A is wrong because the depth of poverty, that is the average shortfall of the poor from the line, is measured by the poverty gap index, and it is precisely what the head count ratio fails to show. Option C is wrong because inequality among the poor is captured by the squared poverty gap or by measures such as the Gini coefficient. Option D is wrong because unemployment is a separate concept measured by labour force surveys; a person may be employed and still poor, which is common among casual workers.