Poverty Line – NCERT Economics Class 9 Chapter 3 Notes

Poverty Line – NCERT Economics Class 9 Chapter 3 Notes & PDF

Topic covered: Poverty Line and MCQs Questions: Poverty as a Challenge (All single detail notes are exam-oriented).

We have discussed in-depth and exam-oriented pointers that can be asked in the board exam of class 9th about the “Poverty Line from the NCERT Economics notes for class 9th chapter 3 Poverty as a Challenge.

Download the NCERT Economics for Class 9th Chapter 3 Poverty as a Challenge Notes PDF

Chapter 3: Poverty as a Challenge in Class 9 Economics deals with one of the most pressing social issues in India. The chapter explains how poverty is measured, its causes, and the everyday struggles faced by poor households. Many students often find the terms like “social exclusion” or “vulnerability” tricky, so these notes break them down with examples that are easy to follow. You’ll also get a clear picture of government schemes and policies aimed at reducing poverty. Download the NCERT Economics for Class 9th Chapter 3 Poverty as a Challenge Notes PDF to revise key points quickly and confidently.

Poverty Line

1. Meaning:

  • Central concept in poverty discussion.
  • Measured on the basis of income or consumption levels.
  • Consumption = money spent on food, clothing, etc.

2. Who is Poor?

  • A person is considered poor if income/consumption falls below the minimum level required to fulfill basic needs.
  • Basic needs vary across time and countries.

3. Variation by Country:

  • United States: Not having a car may mean poverty.
  • India: Owning a car is still considered a luxury.

4. Earlier Method in India:

  • Poverty line included:
  • Food, clothing, footwear, fuel, electricity, education, medical needs.
  • Estimation: Physical quantities × their prices.
  • Focus on calorie requirement for food.

5. Calorie Norms:

  • Rural areas: 2400 calories per person per day.
  • Urban areas: 2100 calories per person per day.
  • Reason: Rural people do more physical work.

6. Poverty Line Expenditure:

  • Bare minimum monetary expenditure per capita required to meet calorie needs = Poverty Line.
  • Revised periodically due to price rise.

7. Recent Approach: Multidimensional Poverty Index (MPI):

  • India now uses 12 developmental indicators.
  • Measures health, education, living standards.
  • Complements income/consumption-based poverty line.
  • Focus: Direct measurement of deprivation.

Comparison of Poverty Measurement Methods in India

AspectOld Method (Income/Consumption Based)New Method (Multidimensional Poverty Index – MPI)
BasisIncome or consumption expenditureMultiple deprivations (health, education, living standards)
Key IndicatorsFood, clothing, footwear, fuel, electricity, education, medical needs12 developmental indicators (nutrition, schooling, sanitation, electricity, housing, assets, etc.)
Focus on FoodCalorie requirement:
• Rural: 2400 calories/day
• Urban: 2100 calories/day
Broader human development aspects, not just food
CalculationMinimum physical quantities × their prices (in rupees)Direct measurement of deprivations in different areas of life
UpdatesRevised periodically with rise in pricesDynamic – considers multiple changing dimensions of poverty
LimitationNarrow, focuses mainly on income/food consumptionMore holistic, reflects real living conditions
ExamplePoor if unable to buy enough food for required caloriesPoor if deprived in multiple dimensions like nutrition, education, sanitation

Next & Previous Topics of NCERT/CBSE Economics Class 9 Chapter 3: Poverty as a Challenge

Topics No.Topics Name
1Two Typical Cases of Poverty
2Poverty As Seen by Social Scientists
3Poverty Line
4Poverty Estimates
5Inter-State Disparities
6Vulnerable Groups
7Global Poverty Scenario
8Causes of Poverty
9Anti-Poverty Measures
10The Challenges Ahead

MCQs on NCERT Economics Class 9 Chapter 3 Topic – Poverty Line

Here are the top exam-oriented MCQ-type questions on “Poverty Line” that you should prepare for your CBSE or state board exams:

Question 1. At the centre of the discussion on poverty is the concept of:

a) National income
b) Poverty line
c) Per capita income
d) Unemployment rate

Answer: b) Poverty line

Question 2. A common method used to measure poverty is based on:

a) Literacy rate
b) Income or consumption levels
c) Employment opportunities
d) Per capita GDP

Answer: b) Income or consumption levels

Question 3. In economics, the term consumption refers to:

a) Quantity of food consumed only
b) Income received by the family
c) Amount spent on various items such as food, clothing, etc.
d) Savings after expenditure

Answer: c) Amount spent on various items such as food, clothing, etc.

Question 4. A person is considered poor if:

a) His/her savings are very low
b) His/her consumption level falls below the minimum level necessary to fulfill basic needs
c) He/she does not own a vehicle
d) He/she lives in a rural area

Answer: b) His/her consumption level falls below the minimum level necessary to fulfill basic needs

Question 5. The poverty line may vary with:

a) Education and employment
b) Taxation and subsidies
c) Time and place
d) Natural resources available

Answer: c) Time and place

Question 6. Each country uses an imaginary poverty line appropriate to its:

a) Population size
b) Minimum social norms and level of development
c) Political system
d) Geographical area

Answer: b) Minimum social norms and level of development

Question 7. Which of the following is considered a luxury in India but a necessity in the United States?

a) Food
b) Shelter
c) Owning a car
d) Clothing

Answer: c) Owning a car

Question 8. While determining the poverty line in India (earlier method), which of the following were included?

a) Food, clothing, footwear, fuel, electricity, education, medical needs
b) Internet, smartphones, cars, housing loans
c) Jewellery, savings, taxes
d) Defence expenditure, subsidies, imports

Answer: a) Food, clothing, footwear, fuel, electricity, education, medical needs

Question 9. The formula for food requirement in estimating poverty line was based on:

a) Income of the family
b) Desired calorie requirement
c) Number of members in family
d) Consumption of luxuries

Answer: b) Desired calorie requirement

Question 10. Which of the following items together provide the required calories?

a) Cars, bikes, mobile phones
b) Cereals, pulses, vegetables, milk, oil, sugar
c) Gold, silver, ornaments
d) Tea, coffee, soft drinks

Answer: b) Cereals, pulses, vegetables, milk, oil, sugar

Question 11. The accepted average calorie requirement per person per day in rural areas of India was:

a) 2500 calories
b) 2000 calories
c) 2400 calories
d) 2100 calories

Answer: c) 2400 calories

Question 12. The accepted average calorie requirement per person per day in urban areas of India was:

a) 2200 calories
b) 2400 calories
c) 2100 calories
d) 1800 calories

Answer: c) 2100 calories

Question 13. Why is the calorie requirement in rural areas higher than in urban areas?

a) People in villages eat more
b) People in rural areas engage in more physical work
c) Urban people have better facilities
d) Rural areas have more food availability

Answer: b) People in rural areas engage in more physical work

Question 14. The bare monetary expenditure per capita needed for buying calorie requirements was considered as:

a) Per capita income
b) Poverty line
c) Minimum wage
d) Subsidy amount

Answer: b) Poverty line

Question 15. Poverty line amount is revised periodically to adjust for:

a) Population growth
b) Rise in prices (inflation)
c) Number of schools and hospitals
d) Number of elections

Answer: b) Rise in prices (inflation)

Question 16. The Government of India has started using which index to estimate the proportion of poor in India?

a) GDP Index
b) Human Development Index
c) Multidimensional Poverty Index (MPI)
d) Income Inequality Index

Answer: c) Multidimensional Poverty Index (MPI)

Question 17. Why was the Multidimensional Poverty Index introduced?

a) To replace census data
b) To measure deprivations directly and complement income/consumption-based poverty measurement
c) To calculate taxes
d) To study unemployment only

Answer: b) To measure deprivations directly and complement income/consumption-based poverty measurement

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