Economics

National Income and Poverty Measurement

1,142 Questions

National income and poverty measurement involves calculating economic indicators like GDP, the Gini coefficient, and the Human Development Index. These metrics help gauge economic health, inequality, and poverty levels within a country. Practice these economics questions to understand the statistical methods used in macroeconomic analysis.

GDP calculationEconomic inequality indicesPoverty line conceptsNational income methods

National Income and Poverty Measurement Questions

Multiple choice economics circular flow of income and methods of calculating national income expenditure method and income method methods of measuring national income national income accounting

Study of how the national income arising from what has been produced in the country is distributed through wages, profits and interest is called the study of ________.

  1. Consumption

  2. Production

  3. Distribution

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The distribution of national income among the factors of production (land, labor, capital, and entrepreneurship) is known as the study of distribution in economics.

Multiple choice economics circular flow of income and methods of calculating national income expenditure method and income method methods of measuring national income national income accounting

Income from second hand sale of goods is _______ from National Income.

  1. measured

  2. excluded

  3. included

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Income from the sale of second-hand goods is excluded from National Income because the value of the good was already counted in the year it was produced as a new good.

Multiple choice economics circular flow of income and methods of calculating national income expenditure method and income method methods of measuring national income national income accounting

Illegal income is _________ in  National Income.

  1. calculated

  2. included

  3. not included

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Illegal income is not recorded or reported to the government or authorities since it has not been generated through legal economic activities. Thus, it is not accounted for when national income is calculated.

Multiple choice economics circular flow of income and methods of calculating national income expenditure method and income method methods of measuring national income national income accounting

National Income is the ________ of all goods and services produced by a country during a period of year.

  1. physical quantity

  2. money value

  3. value

  4. all the three
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

National Income is defined as the total money value of all final goods and services produced within a country during a given period.

Multiple choice economics circular flow of income and methods of calculating national income expenditure method and income method methods of measuring national income national income accounting

"The national income consists of a collection of goods and services reduced to common basis by being measured in terms of money."- who says this?

  1. Samuelson

  2. Kuznets

  3. Hicks

  4. Pigou
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This specific definition of national income, emphasizing the reduction of goods and services to a common monetary basis, is attributed to the economist J.R. Hicks.

Multiple choice economics circular flow of income and methods of calculating national income expenditure method and income method methods of measuring national income national income accounting

To avoid double counting in national income GDP is calculated by summing up ________.

  1. the value of all goods and services

  2. the value of final goods only

  3. the value of producers goods only

  4. the value of non-durable goods
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

To avoid double counting, only the value of final goods and services is included in the GDP calculation, as the value of intermediate goods is already embedded in the final price.

Multiple choice civics consumer in the market consumer awareness, education and protection consumers and their rights consumer : satisfaction and protection

What is the full form of BPL in economic terms?

  1. Bharat Petroleum Limited

  2. Below Poverty Line

  3. Below Prosperity Line

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Poverty is the inability to attain minimum standard of living.
Poverty line indicates the level of poverty.
Above poverty line indicates that people are able to attain minimum standard of living.
Below poverty line indicates that people are not able to attain minimum standard of living.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

Which of the following defines balanced growth?

  1. The state of an economy in which there is a constant relationship between the components of aggregate rational income

  2. The effect upon the national income of equal changes in Government expenditure and revenue

  3. A situation in which the Government planned expenditure equals its expected income

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Balanced growth in the context of the balanced budget multiplier refers to the effect on national income when government expenditure and tax revenue are increased by the same amount, which typically results in an increase in national income equal to the change in expenditure.

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

In an open economy GDP is composed of _______.

  1. consumption, government spending

  2. gross investment

  3. net exports

  4. sum of all
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In an open economy the GDP is calculated as the sum of the 4 sectors of the economy. 

GDP = C + I + G + (X-M) 
         =Consumption + Investment + Government spending + Net exports

Multiple choice national income identity for open economy open economy macroeconomics determination of income and employment economics

In an open economy GDP is the sum of ________.

  1. Consumption, Gross Investment, Government expenditure, Net export

  2. Consumption, Gross Investment, Government expenditure, Net import

  3. Consumption, Gross Investment, Government subsidy, Net export

  4. Consumption, Gross Investment, Net export, Personal saving
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The GDP is calculated using the formula

 $GDP = C + I + G + X - M$ 

Where: 
C = Consumption
I = Gross Investment
G = Government expenditure
X-M = Net export

Multiple choice meaning and importance of taxes government and taxes tax civics economics

Transfer payment includes:

  1. Old age pensioin

  2. Tax payments

  3. Consumer's debt interest

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Transfer payments are those payments which are made without production. These payments are characterized with transfer of money in exchange for no direct receivables in terms of products or services.

Multiple choice population change population dynamics population : distribution, density and growth population, migration, settlements geography

Which of the following is incorrect?

  1. GDP at market price $=$ GDP at factor cost plus net indirect taxes
  2. NNP at factor cost $=$ NNP at market price minus indirect taxes
  3. GNP at market price $=$ GDP at market plus net factor income from abroad

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

None of the above are incorrect because it should be always remember that, Market price $- NIT =$ Factor cost and Domestic Income $+ NFIA =$ National Income.