Poverty

Poverty

Friday, September 10, 2021
7:29 PM

note 6 marks cover

Very short Questions
What is the meaning of poverty ?

Ans page 244
Please write all the short Question ( Q 1 to 10 )

Define poverty. Distinguish between the absolute and relative
property .

Poverty is the situation where people are deprived of basic needs basic right
and basic opportunity for their livelihood .It is defined as the inability of the
people to attain a minimum standard of living
Difference between absolute and relative property page 221

Features of poverty

Those individual who are unable to fulfill even their basic needs are called
poor . Such people lack adequate food cloths shelter education basic health
facility etc .According to Economic survey 2010/20 AD ,16.7 percent of total
population living below poverty line
The features of poor are
1) Low level of income: the income of poor people is low in both rural and

urban area. Tey have small area of low productive land . Their asset is
physical power , which has to be used to earn daily wages . They lack
human capita and compelled to work at low wage. Expenditure exceed the
income. Poor born and die in debt
2) Bad housing condition :poor people have generally large family size . All
the family members have to live in a small hut with limited space mostly
single room . They do not get the basic facilities provides by the state
3) Low level of education : majority of the poor people , both in natural and
urban area are illiterate. High illiteracy is either due to ignorance or
poverty or both . In Nepal more than 35 % of people are illiterate .Among
them majority are poor people
4) Occupation : the occupation of the poor people is generally agriculture in
rural area and physical labor in urban area .Rural poor work as agriculture
workers and urban poor are beggars , garbage shifter
5) High expenditure pattern: in Nepal majority of poor poor people spend
more than 70 percent of their income only in consumption
Besides above point poor people have lack of access to state facility most
of them live in rural areas .there exist large family size with gender
disparity

Discuss the types of unemployment

The situation in which the labour force are willing and able to work but
unable to find employment is called unemployment .

developing Page 1

unable to find employment is called unemployment .
Types of unemployment
Unemployment broadly can divided into two types : voluntary and
involuntary . Voluntary unemployment occurs when the person do not want
to work even though they are able to work . In voluntary unemployment
exist when the individual are willing and able to work but are unable to
get the job , the various types of involuntary unemployment are
1) Frictional unemployment: it is also called transitional unemployment due
to pople moving between jobs . This arises when workers do not accept the
first job and spend sometime looking for better paid jobs
2) Seasonal unemployment : unemployment is also affected by
season .During off season people working in tourism sector building and
farming sector etc. may be out of work.
3) Structural unemployment it occurs when people are unemployed because
of capital -alboir substitution , which reduces the demand for labor .
Machines replace the man and unemployment rises
4) Cyclical unemployment: unemployment occurs due to decrease in
aggregate demand .It occurs when an economy is passing through
economic recession
Other additional unemployment are: classical unemployment disguised
unemployment

Explain the causes of poverty

Those individual who are unable to fulfill even their basic needs are
called poor . Such people lack adequate food cloths shelter education basic
health facility etc
Various factors such as economic historical social political etc are
responsible in Nepal
. Some of the major causes are explain in below
1) Unemployment and underemployment : Root cause of poverty is
unemployment and under employment .Due to unemployment poor cannot
come out from vicious cycle of poverty . Poor become poorer day by day .
2) Low rural development : majority people of Nepal live in rural areas . In
rural area , there is no opportunities of employment and income generation
3) Slow pace of industrial development: In Nepal there is low increment in
industries which is not able to generate there required employment .In
Nepal industrial development is slow due to land locked situation ,lack of
capital , lack of infrastructure. Nepalese industries are not able to compete
with the Indian and chines
4) Education system : More than one third of Nepalese people are illiterate.
Literate people are also not getting quality and need base technical
education .Government is also providing cheap and general education .
Such education system is not able to generate the entrepreneurship and
employment to break the vicious cycle of poverty
5) Social structure : cast base profession , high rate of consumption ,
demonstrating culture, low status of labor, gender discrimination ,
traditional and social norms and values, high expending religious
ceremony ,fatalism are also the cause of the poverty
6) Other causes
→ Rapid population growth
→ Under utilization of natural resources

developing Page 2

→ Under utilization of natural resources
→ Low productivity of agriculture
→ Income inequality
→ Inflation
→ Lack of infrastructure
→ Regional disparity
→ Political instability
→ Political instability
→ Natural calamities

What is poverty ? Explain measures to reduce poverty

Poverty is the situation where people are deprived of basic needs basic
right and basic opportunity for their livelihood .It is defined as the inability
of the people to attain a minimum standard of living
Major poverty reduction measure's are given below
1) Creating economic opportunity : the poor should been encouraged to use
there sources they have with them . This can reduce poverty in long term
basis . The development of infrastructure also increase economic
opportunity and productivities of rural poor .The efficient transport ,
irrigation technological progress and marketing increase agriculture
productivity and opportunity
2) Human resource development : Human resource is the major component of
economic development . Various researches regarding poverty show that
illiteracy sickness and unskilled labor are the root causes of poverty. So it
is necessary to implement program of human resources development like
primary education , basic health care nutrition , skill development
drinking facilities
3) Participation and access of the poor in development: Resources and
opportunities should be available to the poor for production investment .
Development activities must be made participatory. The government effort
and people initiations can go had in hand in developing rural infrastructure
like rural road and bridge drinking water , small hydro - power projects etc
4) Social security : poverty can be reduced by providing social security to old
and those who are unable to work . The nepal government is providing
allownce to window disable and old aged people since 2051BS
5) Women empowerment : Empowering the women means empowering the
50% and their child. Special emphasis should be given to women in
education , health and employment . it control the population and increase
the income
6) Other measures
– Target group orientation program
– Increase economic growth rate
– Creation of employment opportunity
– Food price and distribution policy
– Income generating program

What is income inequality ? Explain its causes .

Inequality is defined as the situation in which the income and wealth are
distributed unequally among the people of a nation .It is also called wealth
disparity
Causes of income inequality are

developing Page 3

Causes of income inequality are
1. Unequal distribution of assists .In the open market economy ,there is

unequal distribution of the land, labor and capital .Those who has more
asses are rich and those who have less are relatively poor
2. difference in inborn capabilities : Different people have different inborn
talents .those who has more talent are richer than other normal person .It
creates the income inequality
3. Difference in education experience and opportunities : those who has
good education experience and obtain good opportunities , they earn more
income than other normal person. It create the income inequality
4. Unemployment: employed people get more income than the unemployed
person .It creates the income inequality.
5. Diversities in preference : person who bears more risk are richer than
normal person. Those who choose more labor than the comfort , more
saving than the expenditure and entertainments earns more income it
creates the income inequality
6. Other causes
i) stage of developments
ii) Geographic variation
iii) Gender discrimination
iv) Imperfect competitive market

What is income inequality ? Give your remedial measures to
reduce economic inequality .

Inequality is defined as the situation in which the income and wealth are
distributed unequally among the people of a nation .It is also called wealth
disparity
Remedial measures to reduce the economic inequality
1. Public education : Different education system creates different
knowledge skill and experience .If there is public education system , it
creates the equal opportunities to all poor and marginal group .
2. minimum wage rate system .Different level of wage rate for different
people creates the income inequality. Minimum wage rate system minimize
the income disparity
3. Introducing tax and benefit systems : If progressive tax system is
impose it it collect from the rich .This collected revenue can be use for
the betterment of the poor
4. minimizing unemployment : Main causes of income inequality is
unemployment .Minimizing the unemployment minimize the income
inequality
5. widening the social securities Those individuals who are unable to fill
their basic need should be helped. So, old age allowance , disable
allowance , education allowance etc increase the receipts of poor and
decrease the income inequality
6. Increasing the propensity to consume : Expenditure of one people is
income of the other .
If propensity to consume of rich is increase it increase the income of poor
and producers
.It increase economic activities of nation

What is unemployment ? What are its types

developing Page 4

What is unemployment ? What are its types

Unemployment is the situation in which a person is willing and able to
work but not getting work is called the unemployment

Types of unemployment
1) Frictional unemployment : frictional unemployment is the transitional

unemployment due to people moving between the jobs .
2) Seasonal unemployment :Some sectors like tourism, construction,

farming etc create the fluctuated demand of labor . So it creates the
seasonal unemployment .This types of unemployment is called the seasonal
unemployment .
3) Structural unemployment If production method change from labor
intensive to capita intensive, it need the different types of labor skill and
reduce the demand of labor .This types of unemployment created by
change in structure in production is called the structural unemployment.
4) Demand deficit unemployment :If the demand of labor decrease due to
decrease in aggregate demand of economy .This types of unemployment
is called the demand deficit unemployment .
5) Classical unemployment :If the Government or trade union force the
real wage rate more than the market clearing rate .It creates
unemployment .This types of unemployment is called the classical
unemployment .
6) Hidden / disguised unemployment : if labors working but its marginal
product is very low then it is called the hidden or disguised
unemployment .
Voluntary unemployment is also a unemployment but is not great issue for
nation .

Discuss the causes and remedial measures of unemployment

Book page 354 Q 17

What are the consequence of the unemployment ?

Those individual who are willing and able to work but are unable to find
job is called unemployment.
Unemployment creates long term , short term , direct and indirect
consequence. some of the consequence are as follows
1. Reduction in potential output :- Due to the Unemployment, There is
no effective utilization of the resources , land ,labour .So, actual GDP is
less then the real GDP
2. Reduction in the tax revenue : Unemployment decrease the number of
economic activities and It reduce the tax revenue and development in
nation .
3. Higher rate of physical and mental illness: unemployed people would be
unable for timely health check-up which bring a number of physical
illness and death .Unemployment cause the mental illness ,
depression ,even the divorce in some families
4. Social unrests an crime : unemployment divides society into two
segments haves and haves not .It creates the income inequality in the
society .Income inequality creates the conflict and social unrest ,crime etc
5. Other additional cost of unemployment are

developing Page 5

5. Other additional cost of unemployment are
I) increase in the rate of poverty
II) Long-term health problem for children
III) Lack of nutrition ,food
IV) Increase in medical costs

What is human resource? Explain the role of human resource in
development .

Human resource is defined as the total population of a country which are
above 15 years and below 60 years of age having high level of education
skill knowledge long experience healthy physical condition and rational
mental condition in a particular time period.
Development is for human beings and by the human being to the human
beings . So human resource has great role in development
Some of the importance are discuss below
1) To utilize natural resources: Human resource is a essential for the
maximum utilization of resources like water forest mineral .Special and
technical knowledge is need to use these resources
2) To develop infrastructures : Basic in fractures such as
road ,transportation , communication ,power supply etc are precondition of
economic development of a country. Development of these infrastructures
depend upon capability of human resources of the country.
3) To improve technology : Human resource can play a vital role in the
improvement of technology .New updated technology plays important role
in development
4) To increase production : Development of human resource increase the
knowledge of natural resources introduce new production technique
extends market ans opportunities f economic activities . These all lead to
increase in production and remove backwardness of the country
5) Basis of social development :Human resource development makes the
society aware about rules and regulation the right and duties and so on . An
ideal society is the property of nation as well as whole human being .A
qualified person provide quality message to society
6) Others roles
• Increase in export trade
• rapid and sustainable economic development
• Development of managerial capacity
• Utilize physical capital
• Basis of agricultural and industrial development
Finally ,people are both the agent and subject of development because
every effort made on development are ultimately aimed for the welfare of
the people themselves.

What is Human development Index (H D I)?

Human development index is a composite index or statistical too used to
measure a country' overall achievement in its economic and social
dimension . It is calculated using health education and per capita income
indicators

Explain the major indicator of the human development .

developing Page 6

Explain the major indicator of the human development .

Human development is development of overall situation such as
health ,education sanitation average life expectancy income poverty
situation condition of women ,human security and environment etc .Main
objective is to produce physically mentally alert economically and socially
healthy manpower
Some major indicator are
1) Demographic indicator: Demography indicators includes the crude birth
rate , infant mortality rate ,population growth rate, total fertility rate .So,
demographic indicator shows the condition of human development .
2) Educational attainment :Education is one of the most important factor that
help to broaden the human choices .Education is equivalent to knowledge
skill and information that enables one to communicate understand
compare ideas .Education provides a window of opportunities for further
education at upper level .Education is for Human development .It shows
the condition of literacy rate , number of school universities
3) Economic indicator :It is one of the major economic indicator because it
shows the condition of the employment per capita income,, use of natural
resources , fulfillment of basic need ,purchasing power of people, saving
and investment ratio.
4) Fulfillment of basic need :Basic need include food ,shelter clothing
education and health service . These need should be adequate for the
human development it means higher the basic need higher will be the
development and vice versa
5) Health indicator: Healthy people can develop nation and himself .Health
indicators of human life are life expectancy at birth population with access
safe drinking water number of health institution , available doctors and
nurses
6) Human happiness : it is one of Human development indicator because it
show the satisfaction of people .Satisfaction show the economical
environment working environment, material welfare social development
political condition psychological condition spiritual development

Current situation of population left one
Ans new data ( population census 2078)
page

developing Page 7