Causes of Poverty MCQs
Causes of Poverty – MCQs with Answers & Explanations
Class: CBSE Class 11
Subject: Economics
Section: Poverty
Topic: Causes of Poverty
Board: CBSE Board Examination
Subject: Economics
Section: Poverty
Topic: Causes of Poverty
Board: CBSE Board Examination
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Exam preparation.
1. One of the primary causes of poverty in India is:
Correct Answer: B
Unemployment reduces income-earning opportunities, making individuals unable to meet basic needs, thus leading to poverty.
2. Rapid population growth leads to poverty because it:
Correct Answer: C
Large population means limited resources and income must be shared among more people, lowering per capita income.
3. Low agricultural productivity is caused by:
Correct Answer: B
Small and fragmented landholdings prevent efficient farming and reduce productivity, causing rural poverty.
4. Disguised unemployment means:
Correct Answer: B
More workers are employed than required, so marginal productivity becomes zero, keeping incomes low.
5. Lack of education causes poverty because it:
Correct Answer: B
Without education, individuals lack skills required for better employment, trapping them in low-income jobs.
6. Colonial rule contributed to poverty by:
Correct Answer: B
British policies exploited Indian resources, leading to deindustrialization and economic backwardness.
7. Unequal distribution of income leads to:
Correct Answer: B
When wealth is concentrated, a large section remains deprived of basic resources.
8. Social factors causing poverty include:
Correct Answer: B
Social discrimination restricts access to education, jobs, and assets.
9. Indebtedness leads to poverty because:
Correct Answer: B
Poor households borrow at high interest, leading to debt traps.
10. Lack of infrastructure causes poverty by:
Correct Answer: B
Poor roads, electricity, and irrigation reduce productivity and income opportunities.
11. Inflation affects poverty by:
Correct Answer: B
Rising prices reduce the purchasing power of the poor.
12. Landlessness is linked with:
Correct Answer: A
Landless labourers depend on uncertain wages.
13. Migration to cities often leads to:
Correct Answer: A
Migrants often get low-paid informal jobs.
14. Low capital formation results in:
Correct Answer: B
Less capital reduces production capacity.
15. Health issues cause poverty due to:
Correct Answer: A
Illness reduces earning and increases expenses.
16. Natural disasters cause poverty by:
Correct Answer: A
Floods and droughts destroy crops and livelihoods.
17. Lack of industrialization leads to:
Correct Answer: B
Fewer industries mean fewer non‑farm jobs.
18. Gender inequality contributes to poverty by:
Correct Answer: B
Women face restricted access to education and employment.
19. Poor governance may cause poverty through:
Correct Answer: A
Corruption diverts resources away from development.
20. Intergenerational poverty occurs when:
Correct Answer: B
Lack of education and assets keeps future generations poor.