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Question

Assertion [A] : The central problem of developing economies is the prevalence of 'mass poverty'.

Reason [R] : Developing economies are characterized by low resource base of the poor who own a very small portion of the total assets.

This question was previously asked in
TNPSC Group 2 2026 Prelims Question Paper (01-Nov-2026)
The correct answer is

Both [A] and [R] are true, and [R] is the correct explanation of [A]

Development economics describes poverty in low-income countries as mass poverty: it affects a large share of the population rather than a small marginal group.

The Assertion is true: mass poverty is treated as the central problem of developing economies, because it limits savings, investment, health and education for most of the people.

The Reason is true: the poor own only a tiny share of land, capital and other productive assets, so their resource base is low and their earning capacity stays low.

The Reason explains the Assertion: when most people command so few assets, their incomes remain near subsistence and poverty becomes widespread. That makes the Reason the correct explanation, ruling out the choice that calls them unrelated.

Both [A] and [R] are true, and [R] is the correct explanation of [A] option is correct.

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Similar Questions

  1. Assertion [A]: Poverty remains one of the major problems in India as a result of rapid increase in population.

    Reason [R]: Socio-economic factors and geographical factors play a part in the extent of poverty.

  2. Which are the two broad categories grouped in the Poverty Alleviation and Employment Generation Programmes (1998–1999)?

    (i) Self Employment Schemes

    (ii) Wage Employment Schemes

    (iii) Employment Generation Schemes

  3. Assertion [A] : Poverty level declines with a rise in agricultural output.

    Reason [R] : Agricultural incomes have declined due to wide fluctuations in climatic conditions.


Important Questions from Poverty

  1. Consider the following statements regarding the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) : 

    I. It aims to reduce poverty by enabling poor households to access gainful self-employment and skilled wage employment opportunities. 
    II. It assures that at least two members from each rural poor household would be brought under the Self-Help Groups (SHGs) network. 
    III. The programme leverages community resources to build institutions and promote livelihoods. 

    Which of the statements given above is/are correct?

  2. Assertion [A]: Poverty remains one of the major problems in India as a result of rapid increase in population.

    Reason [R]: Socio-economic factors and geographical factors play a part in the extent of poverty.

  3. Which are the two broad categories grouped in the Poverty Alleviation and Employment Generation Programmes (1998–1999)?

    (i) Self Employment Schemes

    (ii) Wage Employment Schemes

    (iii) Employment Generation Schemes

  4. Assertion [A] : Poverty level declines with a rise in agricultural output.

    Reason [R] : Agricultural incomes have declined due to wide fluctuations in climatic conditions.

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