Which organization is associated with the estimation of the poverty line in India?
- A.Reserve Bank of India
- B.NITI Aayog
- C.Indian Council of Agricultural Research
- D.National Sample Survey Organisation
Correct answer
Explanation
The correct answer is D, National Sample Survey Organisation. The poverty line in India is worked out from the consumption expenditure data that the NSSO collects through its large sample surveys. The NSSO, now part of the National Statistical Office, asks households what they spend in a month on food and on other items. From these figures a minimum expenditure for a basic basket is fixed, covering food that gives about 2,400 calories a day in villages and 2,100 in towns, along with clothing, fuel, footwear and schooling, and anyone spending below it is counted as poor. Expert groups such as the Lakdawala, Tendulkar and Rangarajan committees have all drawn the line from this NSSO data. A is wrong because the Reserve Bank of India handles currency and monetary policy. B is wrong because NITI Aayog uses the survey figures but does not collect them. C is wrong because the ICAR works on farm research. Exam tip: the NSSO collects the consumption data; expert committees only fix the line from it.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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