Multiple choice

The Atlas method of World Bank is used to estimate

  1. personal disposable income

  2. poverty head count ratio

  3. wholesale price index

  4. gross national income
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Atlas method is a method used by the World Bank to estimate the size of economies in terms of gross national income (GNI) in U.S. dollars. A country's GNI in local (national) currency is converted into U.S. dollars using the Atlas conversion factor, which uses a three-year average of exchange rates to smooth effects of transitory exchange rate fluctuations, adjusted for the difference between the rate of inflation in the country (using the country's GDP deflator), and that in a number of developed countries (using a weighted average of the countries' GDP deflators in SDR terms). The resulting GNI in U.S. dollars is divided by the country's midyear population to obtain the GNI per capita.

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