Social Inequality and Policy

India traditionally defined the poverty line based on per capita calorie intake (2400 calories rural, 2100 calories urban per day). The other options - housing, income, and general health - are important development indicators but were not the official parameters for defining the poverty line in India.

The World Bank defined extreme poverty as living on less than \$1.25 per day (2005 PPP). This was the international poverty line until it was updated to \$1.90 in 2015. The $1 per day threshold was an earlier definition.

Access to clean drinking water directly affects Per Capita GDP because better health outcomes from clean water increase workforce productivity and reduce healthcare costs. This economic indicator measures average economic output per person and is sensitive to population health factors like water quality.

Developing economies typically have high population growth (A), high unemployment (C), and widespread poverty (D). A high rate of capital formation (B) is characteristic of developed economies, not developing ones. Developing economies struggle to accumulate capital.

The World Bank's international poverty line was defined at \$1.25 per day (updated to \$1.90 in 2015). The options of $1, $0.50, and $1.50 per day do not match the official World Bank poverty line definition from that period.

Extravagance means wasteful spending or excessiveness. Economy means careful management of resources and avoiding waste - the direct opposite in behavior. Poverty is a state of lack rather than a behavior, luxury is similar to extravagance, and cheapness relates to cost.

Disproportion means lack of proportion or symmetry between parts, something out of balance or scale. Option A defines it accurately. The other options are unrelated: B is a commune (collective), C means to remove offensive content (expurgate), and D describes being calm/composed (sedate).

Poverty in India is caused by factors like population pressure (A), income inequality (C), and surplus agricultural labor (D). Abundant natural resources (B) would typically reduce poverty, not cause it. A country with abundant natural resources has more potential for wealth creation.

RRBs (Regional Rural Banks) were established specifically to provide banking and credit facilities to the weaker sections of rural society, including small and marginal farmers, agricultural laborers, artisans, and small entrepreneurs. While they serve rural people generally, their primary mandate is financial inclusion for the economically disadvantaged in rural areas.

India's high birth rate stems from multiple interconnected factors: predominance of agriculture (where more children means more farm labor), slow urbanization (urban areas typically have lower fertility), and high poverty incidence (poor families often lack access to contraception and may view children as economic assets). All factors contribute significantly to India's demographic challenges.

This is correct as either one of the two arguments can be considered strong.

Land reforms and huge agriculture growth coupled with widespread industrialisation greatly contributed towards increase in per capita income. Exports are also responsible for employment generation.

There is widespread lack of openness about sexual and reproductive health. Low female literacy is a key driver. There is acute resistance to sexual education at school level. Social taboos is also a prominent factor.

Health and sanitation are not factors instrumental for low HDI of India. In fact, the benefits of open economy have not been largely beneficial to the terming millions of illiterate and semi-literate classes. Hence, decline in poverty line has not been noticeable or up to the desired level.

It is not a method of reducing inequality. If the equal rates of taxes are imposed on the rich as well as the poor, the burden of tax will be more on the poor as they earn less. On the other hand, the rich will not pay more and hence they will become richer and the gap between the haves and have-nots will not decrease.