Chapter 2

NCERT
Class 9
Economics
Solutions
1. Study Table 3.1 and answer the following questions:

Question:

Study Table 3.1 and answer the following questions:

1. Even if the poverty ratio declined between 1993–94 and 2004–05, why did the number of poor remain at about 407 million?

2. Are the dynamics of poverty reduction the same in rural and urban India?

Answer:

1. (The poverty ratio declined between 1073-74 and 1993-94 but the number of poor remained at about 320 million because the total population of the country increased during the same period. Out of this increased population more people got employment due to the green Revolution, establishment of more industries and growth of the tertiary sector. As a result the poverty ratio declined.

2. No, the dynamics of poverty reduction are not the same in rural and urban areas because the conditions in both the areas are completely different. Urban area poverty has decreased due to expansion of the service sector, increased industrialisation and consequent increase of jobs. This has resulted in migration to cities and towns from rural areas. Rural area poverty has reduced due to improved agricultural practices resulting in higher incomes. Some contribution to this improvement is due to the migration to urban areas.

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