Which Sustainable Development Goal (SDG) aims to end poverty in all its forms everywhere?

Correct Option: A. Solution: SDG 1 aims to end poverty in all its forms everywhere.

Poverty as a Challenge

Objectives Notes Exam Tips Practice Qs Ask AI

Learning Objectives

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Learning Objectives

Analyze the different approaches to measuring poverty.
Evaluate the effectiveness of the National Multidimensional Poverty Index.
Discuss the trends of poverty in India from 1993 to 2021.
Identify the social and economic groups most vulnerable to poverty.
Explain the role of government interventions in poverty reduction.
Describe the indicators used to estimate multidimensional poverty in India.
Differentiate between consumption-based poverty line and multidimensional poverty estimates.

Revision Notes & Summary

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Chapter: Poverty as a Challenge

Overview

This chapter discusses the challenge of poverty in India, analyzing it through various approaches, including the National Multidimensional Poverty Index (MPI).
The Headcount Ratio (HCR) of multidimensional poverty has significantly decreased:
- 55% in 2005-06
- 25% in 2015-16
- 15% in 2019-21
Future expectations suggest that multidimensional poverty may soon reach single digits.

Key Concepts

Poverty Measurement Approaches

Multidimensional Poverty Index (MPI): Developed by NITI Aayog, it assesses poverty through various indicators beyond income.
Consumption-based Poverty Line: Traditional method based on income or consumption levels.

Indicators of Multidimensional Poverty

Nutrition: Deprivation if any child (0-59 months) or woman (15-49 years) is undernourished.
Child-Adolescent Mortality: Deprivation if any child/adolescent under 18 has died in the household in the last five years.
Maternal Health: Deprivation if a woman did not receive skilled assistance during childbirth.
Years of Schooling: Deprivation if no member aged 10+ has completed six years of schooling.
School Attendance: Deprivation if any school-aged child is not attending school.
Cooking Fuel: Deprivation if cooking is done with dung, wood, or coal.
Sanitation: Deprivation if there is no improved sanitation facility.
Drinking Water: Deprivation if safe drinking water is not accessible.
Housing: Deprivation if housing is inadequate (natural materials).
Electricity: Deprivation if there is no electricity.
Assets: Deprivation if the household does not own more than one specified asset.
Bank Account: Deprivation if no member has a bank or post office account.

Poverty Trends in India

Table 3.1: Estimates of Poverty in India (1993 - 2019)

Year	Head Count Ratio (%)	Number of Poor (in millions)
1993-94	Rural: 50, Urban: 32, Total: 45	Rural: 329, Urban: 75, Combined: 404
2004-05	Rural: 42, Urban: 26, Total: 37	Rural: 326, Urban: 81, Combined: 407
2009-10	Rural: 34, Urban: 21, Total: 30	Rural: 278, Urban: 76, Combined: 355
2011-12	Rural: 26, Urban: 14, Total: 22	Rural: 217, Urban: 53, Combined: 270
2015-16	Rural: 32.6, Urban: 8.7, Total: 25	NA
2019-21	Rural: 19.3, Urban: 5.3, Total: 15	NA

Vulnerable Groups

Social Groups: Scheduled Castes and Scheduled Tribes are most vulnerable.
Economic Groups: Rural agricultural-labor households and urban casual-labor households are at higher risk of poverty.

Government Interventions

Various government schemes have been implemented to reduce poverty, including:
- Pradhan Mantri Surakshit Matritva Abhiyan: Aims to reduce maternal and infant mortality.
- Pradhan Mantri Ujjwala Yojana (PMUY): Provides clean cooking fuel to economically poor households.

Conclusion

Despite progress in poverty reduction, significant challenges remain, particularly in rural areas and among vulnerable social groups.

Exam Tips & Common Mistakes

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Common Mistakes and Exam Tips on Poverty

Common Pitfalls

Misunderstanding the Poverty Line: Students often confuse the consumption-based poverty line with the Multidimensional Poverty Index (MPI). It's crucial to differentiate between these two methods of measuring poverty.
Ignoring State Disparities: Many overlook the significant interstate disparities in poverty levels. It's important to recognize that states like Kerala and Tamil Nadu have much lower poverty rates compared to states like Bihar and Uttar Pradesh.
Overlooking Vulnerability Factors: Students may fail to consider social exclusion and vulnerability as critical components of poverty. Understanding these concepts is essential for a comprehensive analysis of poverty.

Tips for Exam Preparation

Focus on Definitions: Make sure to clearly understand and define key terms such as 'Head Count Ratio', 'Multidimensional Poverty Index', and 'social exclusion'.
Use Examples: When discussing poverty trends, refer to specific examples from the text, such as the cases of Ram Saran and the impact of government schemes like the Pradhan Mantri Ujjwala Yojana.
Analyze Trends: Be prepared to discuss poverty trends over time, particularly the decline in the Head Count Ratio from 2005-06 to 2019-21.
Understand Government Interventions: Familiarize yourself with various government initiatives aimed at reducing poverty, such as the Mahatma Gandhi National Rural Employment Guarantee Act and the Pradhan Mantri Surakshit Matritva Abhiyan.
Prepare for Comparative Questions: Be ready to compare different poverty measurement methods and their implications on policy and social welfare.

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Practice Test – MCQs, True/False

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Multiple Choice Questions

Lack of shelter

Access to quality education

Lack of clean water and sanitation

Irregular job with low wages

Correct Answer: B

Solution:

Access to quality education is not a feature of poverty; rather, poverty is characterized by lack of such access.

SDG 1

SDG 2

SDG 3

SDG 4

Correct Answer: A

Solution:

SDG 1 is directly associated with the aim to 'End poverty in all its forms everywhere'.

Nutrition

Years of schooling

Cooking fuel

Child mortality

Correct Answer: C

Solution:

The National Multidimensional Poverty Index uses indicators such as cooking fuel, sanitation, drinking water, housing, electricity, assets, and bank account to assess the standard of living.

Social exclusion and vulnerability

GDP and inflation rate

Employment rate and literacy

Trade balance and foreign investment

Correct Answer: A

Solution:

Social scientists use indicators such as social exclusion and vulnerability to understand poverty beyond just income and consumption levels.

Headcount Ratio

Multidimensional Poverty Index

Per Capita Income

Gini Coefficient

Correct Answer: B

Solution:

The Multidimensional Poverty Index (MPI) includes indicators such as education and health, which would directly improve as a result of the policy providing free education and healthcare.

Kerala

Tamil Nadu

Bihar

Uttar Pradesh

Correct Answer: B

Solution:

Tamil Nadu has been known for its effective public distribution system, which has contributed to reducing its HCR to less than 10%.

Unequal distribution of land

High growth of population

High levels of education

Low rate of economic development under colonial rule

Correct Answer: C

Solution:

High levels of education are not considered a cause of poverty; rather, lack of education is a contributing factor.

Urban salaried employees

Scheduled Caste and Scheduled Tribe households

Large landowners

Government officials

Correct Answer: B

Solution:

Scheduled Caste and Scheduled Tribe households are identified as the most vulnerable to poverty in India.

Pradhan Mantri Surakshit Matritva Abhiyan

Pradhan Mantri Ujjwala Yojana

Mahatma Gandhi National Rural Employment Guarantee Act

National Multidimensional Poverty Index

Correct Answer: B

Solution:

Pradhan Mantri Ujjwala Yojana aims to provide clean cooking fuel (LPG) to economically poor households, especially in rural areas.

The rural population decreased significantly.

The overall population in the area increased.

The poverty line was raised.

The area experienced significant economic growth.

Correct Answer: B

Solution:

If the overall population in the area increased, the number of poor people could increase even if the poverty ratio decreased.

Years of schooling

Child mortality

Access to sanitation

Nutritional status

Correct Answer: C

Solution:

Standard of living indicators typically include access to sanitation, drinking water, electricity, and housing. Years of schooling and child mortality are health and education indicators, respectively.

SDG 7: Affordable and Clean Energy

SDG 1: No Poverty

SDG 13: Climate Action

SDG 8: Decent Work and Economic Growth

Correct Answer: A

Solution:

Reducing the cost of producing clean energy directly supports SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all.

Urban casual-labour households

Rural landowners

Government employees

Private sector employees

Correct Answer: A

Solution:

Urban casual-labour households are identified as one of the most vulnerable groups to poverty in India.

Bihar

Kerala

Madhya Pradesh

Uttar Pradesh

Correct Answer: B

Solution:

Kerala is one of the states that has achieved a Head Count Ratio of less than 10% due to its focus on human resource development.

Increasing the minimum wage

Implementing universal basic income

Reducing taxes for the wealthy

Increasing subsidies for luxury goods

Correct Answer: B

Solution:

Implementing universal basic income would directly address income inequality by providing a financial safety net for all citizens, thereby reducing the income gap.

Access to internet

Years of schooling

Ownership of a vehicle

Number of family members

Correct Answer: B

Solution:

Years of schooling is an education indicator used in the National Multidimensional Poverty Index.

Years of schooling

Number of schools in an area

Teacher-student ratio

School infrastructure

Correct Answer: A

Solution:

The National Multidimensional Poverty Index uses years of schooling as an indicator for education.

No change

Decrease by 1 million

Increase by 1 million

Decrease by 2 million

Correct Answer: A

Solution:

Initially, the number of poor people was 40% of 10 million, which is 4 million. After a decade, the number of poor people is 20% of 15 million, which is 3 million. Therefore, the absolute number of poor people decreased by 1 million.

Increased job opportunities

Improved access to education

Lack of access to facilities and opportunities

Higher income levels

Correct Answer: C

Solution:

Social exclusion can lead to a lack of access to facilities and opportunities.

To provide employment opportunities

To reduce maternal and infant mortality

To promote higher education

To improve infrastructure in rural areas

Correct Answer: B

Solution:

The Pradhan Mantri Surakshit Matritva Abhiyan was launched to reduce maternal and infant mortality by providing quality antenatal care to pregnant women.

Nutrition

Years of schooling

Internet access

Sanitation

Correct Answer: C

Solution:

The National Multidimensional Poverty Index considers factors like nutrition, years of schooling, and sanitation, but not internet access.

SDG 1

SDG 5

SDG 10

SDG 13

Correct Answer: A

Solution:

SDG 1 is 'No Poverty', which aims to end poverty in all its forms everywhere.

Providing free education to children

Guaranteeing 100 days of wage employment in a financial year

Offering free healthcare to all citizens

Ensuring free housing for the poor

Correct Answer: B

Solution:

The Mahatma Gandhi National Rural Employment Guarantee Act 2005 guarantees 100 days of wage employment in a financial year to rural households.

Nutrition

Years of schooling

Access to internet

Sanitation

Correct Answer: C

Solution:

The National Multidimensional Poverty Index (MPI) in India uses health, education, and standard of living indicators such as nutrition, years of schooling, and sanitation. Access to internet is not a component.

Zero Hunger

No Poverty

Quality Education

Clean Water and Sanitation

Correct Answer: B

Solution:

The primary goal of Sustainable Development Goal 1 is to end poverty in all its forms everywhere.

SDG 1

SDG 4

SDG 8

SDG 10

Correct Answer: A

Solution:

SDG 1 directly aims to end poverty in all its forms everywhere by 2030.

Bihar

Kerala

Madhya Pradesh

Uttar Pradesh

Correct Answer: B

Solution:

Kerala had an HCR of less than 10% in 2019-21, as noted in the provided excerpts.

Textile industry

Agriculture sector

Information Technology

Automobile industry

Correct Answer: B

Solution:

The Green Revolution created job opportunities in the agriculture sector.

Urban casual-labour households

Scheduled Caste households

Industrial workers

Business owners

Correct Answer: B

Solution:

Scheduled Caste households are identified as one of the most vulnerable social groups to poverty in India according to the National Multidimensional Poverty Index.

High levels of industrialization

Unequal distribution of land and resources

Excessive foreign investment

High literacy rates

Correct Answer: B

Solution:

The unequal distribution of land and resources is mentioned as a cause of poverty.

Kerala

Bihar

Uttar Pradesh

Madhya Pradesh

Correct Answer: A

Solution:

According to the National Multidimensional Poverty Index, Kerala has achieved an HCR of less than 10% as of 2019-21.

High level of industrialization

Unequal distribution of land and resources

Low population growth

High literacy rates

Correct Answer: B

Solution:

The unequal distribution of land and resources is a major reason for high poverty rates in India.

Rural agricultural-labour households

Urban casual-labour households

Scheduled Caste households

Scheduled Tribe households

Correct Answer: B

Solution:

Urban casual-labour households are most likely to benefit from employment opportunities in urban areas.

Kerala

Bihar

Tamil Nadu

Haryana

Correct Answer: B

Solution:

The states of Bihar, Uttar Pradesh, Madhya Pradesh, and Rajasthan saw a significant decline in the number of MPI poor due to government intervention policies.

Economic growth

Income inequality

Multidimensional poverty

Employment rates

Correct Answer: C

Solution:

The National Multidimensional Poverty Index primarily measures multidimensional poverty.

Increasing the number of public health clinics and schools

Providing tax incentives for local businesses

Investing in infrastructure projects like roads and bridges

Reducing import tariffs on essential goods

Correct Answer: A

Solution:

Increasing the number of public health clinics and schools directly addresses human development indicators by improving access to education and healthcare.

Economic growth is concentrated in a few sectors

There is a high level of inflation

The region has a large young population

The government has increased social welfare spending

Correct Answer: A

Solution:

If economic growth is concentrated in a few sectors, it may not benefit the entire population, leading to persistent poverty despite overall economic growth.

Providing quality antenatal care

Encouraging the use of smoke-free kitchen

Offering free education to girls

Providing employment to rural youth

Correct Answer: B

Solution:

The Pradhan Mantri Ujjwala Yojana aims to encourage the use of smoke-free kitchen by providing clean cooking fuel (LPG) to economically poor households.

Providing universal access to primary education

Implementing a universal basic income

Offering targeted job training programs for marginalized communities

Reducing corporate tax rates

Correct Answer: C

Solution:

Targeted job training programs for marginalized communities directly address social exclusion by providing opportunities for groups that are often left out of economic growth.

55%

25%

15%

Correct Answer: C

Solution:

The percentage of multidimensionally poor in India was 15% in 2019-21.

A family unable to afford basic health care

An individual denied job opportunities due to caste discrimination

A community affected by a natural disaster

A person losing their job due to economic recession

Correct Answer: B

Solution:

Social exclusion refers to individuals or groups being denied access to opportunities and resources that are available to other members of society. Caste discrimination leading to denied job opportunities is a classic example of social exclusion.

High level of technological advancement

Unequal distribution of resources

Excessive foreign investment

Overemployment in urban areas

Correct Answer: B

Solution:

A significant cause of poverty in India is the unequal distribution of resources, as mentioned in the excerpts.

Kerala

Bihar

Madhya Pradesh

Rajasthan

Correct Answer: A

Solution:

Kerala has focused more on human resource development to reduce poverty.

Income level

Child and adolescent mortality

Employment status

Access to transportation

Correct Answer: B

Solution:

The National Multidimensional Poverty Index uses child and adolescent mortality as a health indicator.

Pradhan Mantri Surakshit Matritva Abhiyan

Pradhan Mantri Ujjwala Yojana

National Multidimensional Poverty Index

Mahatma Gandhi National Rural Employment Guarantee Act

Correct Answer: B

Solution:

Pradhan Mantri Ujjwala Yojana was launched in 2016 to provide clean cooking fuel to economically poor households.

Improved access to clean water and sanitation

Increased agricultural subsidies

Enhanced maternal health services

Higher school attendance rates

Correct Answer: B

Solution:

While agricultural subsidies can improve economic conditions, they do not directly impact the multidimensional indicators like health, education, and living standards that are measured in the MPI.

To provide clean drinking water

To offer free education to girls

To provide clean cooking fuel to economically poor households

To ensure employment for all

Correct Answer: C

Solution:

The Pradhan Mantri Ujjwala Yojana aims to provide clean cooking fuel, specifically LPG, to economically poor households.

Increase in poverty due to displacement

Decrease in poverty due to increased employment

No change in poverty levels

Increase in poverty due to increased food prices

Correct Answer: B

Solution:

The introduction of an irrigation project typically increases agricultural productivity, leading to more job opportunities and higher incomes, which can decrease poverty levels.

SDG 1

SDG 5

SDG 10

SDG 17

Correct Answer: A

Solution:

SDG 1 aims to end poverty in all its forms everywhere.

SDG 1: No Poverty

SDG 4: Quality Education

SDG 5: Gender Equality

SDG 8: Decent Work and Economic Growth

Correct Answer: B

Solution:

The policy primarily aims to achieve SDG 4: Quality Education, which focuses on ensuring inclusive and equitable quality education and promoting lifelong learning opportunities for all.

Bihar

Kerala

Madhya Pradesh

Uttar Pradesh

Correct Answer: B

Solution:

According to the National Multidimensional Poverty Index, states like Kerala and Tamil Nadu have achieved an HCR of less than 10% between 2019-21.

Increasing population growth

Higher economic growth

Decreased focus on education

Increased deforestation

Correct Answer: B

Solution:

Higher economic growth is most likely to contribute to the reduction of multidimensional poverty in India, as it can lead to better job opportunities and improved living standards.

Nutrition

Years of schooling

Internet access

Sanitation

Correct Answer: C

Solution:

Internet access is not listed as an indicator in the National Multidimensional Poverty Index, which focuses on health, education, and standard of living.

2005-06

2015-16

2019-21

2023-24

Correct Answer: C

Solution:

The multidimensional poverty ratio in India fell to approximately 15% in the year 2019-21.

Lack of natural resources

Wide disparities between rural and urban areas

Excessive foreign aid

High literacy rates

Correct Answer: B

Solution:

Wide disparities in poverty between rural and urban areas are highlighted as a challenge in the excerpts.

True or False

Correct Answer: False

Solution:

While some states like Kerala and Tamil Nadu have reached less than 10% on the HCR front, not all states have achieved this level. Many states still have higher poverty rates.

Correct Answer: True

Solution:

The Pradhan Mantri Ujjwala Yojana aims to provide liquefied petroleum gas (LPG) to economically poor households, especially in rural areas, to promote clean cooking and reduce health hazards.

Correct Answer: True

Solution:

Social exclusion is described as both a cause and a consequence of poverty, affecting individuals' access to opportunities.

Correct Answer: True

Solution:

The National Multidimensional Poverty Index indicates a significant reduction in the headcount ratio of multidimensionally poor, as mentioned in the excerpts.

Correct Answer: True

Solution:

The excerpts state that Kerala and Tamil Nadu have achieved a headcount ratio of less than 10 percent.

Correct Answer: False

Solution:

The National Multidimensional Poverty Index was developed by NITI Aayog in collaboration with UNDP and Oxford Policy and Human Development Initiative.

Correct Answer: False

Solution:

The impact of the Green Revolution was limited to some parts of India and did not significantly reduce poverty across all regions.

Correct Answer: False

Solution:

While the Mahatma Gandhi National Rural Employment Guarantee Act 2005 is an important policy, it is not specifically highlighted as a main feature in the provided excerpts.

Correct Answer: False

Solution:

The poverty ratio declined between 1993-94 and 2004-05, but the number of poor remained at about 407 million.

Correct Answer: False

Solution:

The Pradhan Mantri Surakshit Matritva Abhiyan was launched to reduce maternal and infant mortality by providing quality antenatal care, not for providing clean cooking fuel.

Correct Answer: True

Solution:

The multidimensional poverty ratio fell from approximately 55% in 2005-06 to 15% in 2019-21, indicating a significant decrease.

Correct Answer: False

Solution:

The Pradhan Mantri Ujjwala Yojana primarily targets economically poor households in rural areas, not urban areas.

Correct Answer: True

Solution:

Social exclusion can lead to poverty by denying individuals access to resources and opportunities, and it can also be a consequence of poverty as the poor are often excluded from societal benefits.

Correct Answer: True

Solution:

Both Kerala and Tamil Nadu have reached less than 10% on the Headcount Ratio front for multidimensional poverty.

Correct Answer: True

Solution:

Forecasts indicate that by 2030, the majority of the world's extreme poor will be concentrated in Sub-Saharan Africa.

Correct Answer: False

Solution:

Social exclusion can be both a cause and a consequence of poverty.

Poverty as a Challenge

Learning Objectives

Learning Objectives

Revision Notes & Summary

Chapter: Poverty as a Challenge

Overview

Key Concepts

Poverty Measurement Approaches

Indicators of Multidimensional Poverty

Poverty Trends in India

Vulnerable Groups

Government Interventions

Conclusion

Exam Tips & Common Mistakes

Common Mistakes and Exam Tips on Poverty

Common Pitfalls

Tips for Exam Preparation

AI Learning Assistant

Practice Test – MCQs, True/False

Multiple Choice Questions

Q1.Which of the following is NOT a feature of poverty as described in the excerpts?

Correct Answer: B

Q2.Which Sustainable Development Goal (SDG) is directly associated with the aim to 'End poverty in all its forms everywhere'?

Correct Answer: A

Q3.What does the National Multidimensional Poverty Index use as an indicator for standard of living?

Correct Answer: C

Q4.According to social scientists, what additional indicators are used to understand poverty beyond income and consumption?

Correct Answer: A

Q5.Consider a scenario where a state government implements a new policy aimed at reducing poverty by providing free education and healthcare to all residents. Which of the following indicators would most likely show a direct improvement as a result of this policy?

Correct Answer: B

Q6.A study shows that a particular state has reduced its Head Count Ratio (HCR) to less than 10% due to effective public distribution of food grains. Which state is most likely to have achieved this based on historical data?

Correct Answer: B

Q7.Which of the following factors is NOT typically considered a cause of poverty in India?

Correct Answer: C

Q8.Which of the following groups is most vulnerable to poverty in India?

Correct Answer: B

Q9.Which of the following government programs aims to provide clean cooking fuel to economically poor households in rural India?

Correct Answer: B

Q10.In a hypothetical study, it was found that the poverty ratio in a rural area decreased from 40% to 30% over a decade. However, the number of poor people increased. Which of the following could explain this phenomenon?

Correct Answer: B

Q11.In the context of multidimensional poverty, which of the following indicators is most likely to be used to measure 'standard of living'?

Correct Answer: C

Q12.Imagine a scenario where a new technology reduces the cost of producing clean energy significantly. Which Sustainable Development Goal (SDG) would this most directly support?

Correct Answer: A

Q13.Which of the following socio-economic groups is most vulnerable to poverty in India?

Correct Answer: A

Q14.In the context of India's poverty reduction efforts, which of the following states has achieved a Head Count Ratio (HCR) of less than 10% as of 2019-21?

Correct Answer: B

Q15.A new study shows that despite a reduction in the poverty rate, income inequality has increased in a country. Which of the following measures would most likely address this issue?

Correct Answer: B

Q16.What is one of the indicators used to estimate multidimensional poverty in India?

Correct Answer: B

Q17.What does the National Multidimensional Poverty Index use as an indicator for education?

Correct Answer: A

Q18.Consider a hypothetical state 'X' where the poverty ratio declined from 40% to 20% over a decade. If the population of state 'X' increased from 10 million to 15 million in the same period, what is the change in the absolute number of poor people?

Correct Answer: A

Q19.What is a consequence of social exclusion according to the provided excerpts?

Correct Answer: C

Q20.What is the main aim of the Pradhan Mantri Surakshit Matritva Abhiyan?

Correct Answer: B

Q21.Which of the following factors is NOT typically considered in the National Multidimensional Poverty Index?

Correct Answer: C

Q22.Which Sustainable Development Goal (SDG) is directly related to ending poverty?

Correct Answer: A

Q23.What is one of the main features of the Mahatma Gandhi National Rural Employment Guarantee Act 2005?

Correct Answer: B

Q24.Which of the following is NOT a component used in calculating the National Multidimensional Poverty Index (MPI) in India?

Correct Answer: C

Q25.What is the primary goal of the Sustainable Development Goal 1 set by the United Nations?

Correct Answer: B

Q26.Which of the following Sustainable Development Goals (SDGs) directly aims to end poverty in all its forms everywhere by 2030?

Correct Answer: A

Q27.Which of the following states had a Head Count Ratio (HCR) of less than 10% in 2019-21?

Correct Answer: B

Q28.Which sector saw job creation due to the Green Revolution?

Correct Answer: B

Q29.Which social group in India is most vulnerable to poverty according to the National Multidimensional Poverty Index?

Correct Answer: B

Q30.Which of the following is a cause of poverty mentioned in the excerpts?

Correct Answer: B