Which of the following statements with regard to the Report of Tendulkar Committee (2009) on poverty estimates is/are correct? 1. The Committee had used an all-India urban poverty line basket as a reference to derive both rural and urban poverty levels. 2. The Committee had anchored the poverty line to the official food calorie norms. Select the correct answer using the code given below.
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
Correct answer
Explanation
The correct answer is A, 1 only. The Suresh Tendulkar expert group, which reported to the Planning Commission in 2009, deliberately moved away from the old calorie-based poverty line. Earlier lines, set by the Lakdawala method, were anchored to a minimum of about 2400 calories a day in rural areas and 2100 in urban areas. Tendulkar argued that calorie intake was a poor measure of well-being and instead used a consumption basket that also counted spending on health and education. It took the all-India urban poverty line basket as its reference and, using price differences, derived state-wise rural and urban poverty lines from it. On this method it estimated that about 37.2 percent of Indians were poor in 2004-05. Statement 1 is therefore correct. Statement 2 is wrong because the committee did not anchor its line to calorie norms; it only checked that nutrition at the new line was adequate. So options B, C and D, which treat statement 2 as correct or reject statement 1, are wrong. Exam tip: Tendulkar 2009 dropped the calorie anchor and used the urban basket; Rangarajan reported in 2014.
Practice Questions
View allA market situation when many firms sell similar but not identical products is termed as
- A.perfect competition
- B.imperfect competition
- C.monopolistic competition
- D.oligopoly
Show answer
Monopolistic competition is a market with many sellers whose products are close substitutes but not exactly the same, such as different brands of soap, toothpaste or restaurant meals.
Read the full explanation →Under normal downward sloping demand curve and fully elastic supply curve of a commodity, an exogenous decrease in demand would lead to
- A.increase in equilibrium price and quantity
- B.decrease in equilibrium price and quantity
- C.decrease in equilibrium quantity and no change in price
- D.increase in equilibrium price and no change in quantity
Show answer
A fully (perfectly) elastic supply curve is a horizontal line: sellers will supply any quantity at one fixed price and nothing below it.
Read the full explanation →Which of the following are included in M1 definition of money for the Indian economy? 1. Reserves 2. Currency 3. Time deposits 4. Demand deposits Select the correct answer using the code given below.
- A.1 and 3 only
- B.2 and 3
- C.2 and 4
- D.1, 3 and 4
Show answer
M1, called narrow money, is the most liquid measure of money supply in India. It is made up of currency with the public, demand deposits with banks, and other deposits with the Reserve Bank of India.
Read the full explanation →Level of per capita GDP depends upon which of the following? 1. Proportion of population in the working age 2. Work participation rate 3. Per worker productivity Select the correct answer using the code given below.
- A.3 only
- B.1 and 3 only
- C.1 and 2 only
- D.1, 2 and 3
Show answer
Per capita GDP is total output divided by total population, and it can be broken into three parts that multiply together.
Read the full explanation →Which of the following components of Central Government taxes on petroleum products is/are not shareable with the States? 1. Basic Excise Duty 2. Additional Excise Duty 3. Special Additional Excise Duty Select the correct answer using the code given below.
- A.1 and 2 only
- B.1, 2 and 3
- C.3 only
- D.2 and 3 only
Show answer
The Union excise levied on petrol and diesel has three parts. Basic Excise Duty is an ordinary Union tax, so it goes into the divisible pool and a share of it reaches the states as recommended by the Finance Commission under Article 270.
Read the full explanation →