Economics

National Income and Poverty Measurement

1,163 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 some macroeconomic identities national income accounting national income aggregates

Which of these is/are not included in net domestic product at factor cost?

  1. Wages or compensation of employees

  2. Rent, interest, profit or operating surplus

  3. Mixed income

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

Net Domestic Product at factor cost (NDPfc) includes wages, rent, interest, profit, and mixed income. Therefore, none of these items are excluded.

Multiple choice economics circular flow of income and methods of calculating national income some macroeconomic identities national income accounting national income aggregates

For most economies which of these statement is true?

  1. National income accounts and national output accounts are equal to each other.

  2. Estimation of national income is just impossible

  3. National output is less than national Income

  4. National income is less than national output
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In macroeconomic accounting, the total value of national income (sum of factor incomes) is equal to the total value of national output (sum of final goods and services produced) due to the circular flow of income.

Multiple choice economics the story of village palampur farming and non-farming activities in village non - economic activities economy of a village

Choose the correct answers from the alternatives given.
In India, agriculture income is calculated by _______________.

  1. Output Method

  2. Input Method

  3. Expenditure Method

  4. Commodity flow method
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In India agriculture, forestry and logging, fishing mining and quarrying, registered manufacturing and construction units are included in category.A. The output method is applied to category A. The value added by this category is found by subtracting the value of raw materials and other inputs from the aggregate of commodity-wise output
Expenditure method- This method measures the National income sum total of final expenditure incurred by household, business firm. Govt. and Foreigners
Commodity flow method: This method is used to estimate the purchase of commodities by intermediate or final users. This method generally begins with an estimate of the total supply of a commodity available for domestic users.

Multiple choice geography ideas of development study of population in tamil nadu population and migration human geography in tamil nadu

The human development index(HDI) is used to measure human development of a particular country. In order to calculate it takes in to account _________________.

  1. Life expectancy

  2. Education index

  3. Income index

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

the human development index takes into account three dimensions to calculate human development of a country. The dimensions are-1 Life expectancy
                                                                           2 Education index
                                                                           3 Income index.

Multiple choice history educational development in india educational development of independent india quality of population human capital formation in india

The percentage of education expenditure of GDP expresses _____.

  1. the importance of education in the scheme of things before the government

  2. how much of our income is being committed to the development of education in the country

  3. both A and B

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

Education expenditure is expressed as a percentage of total government expenditure/total government expenditure. It is expressed as how much of the total income is being committed to the development of education in the country. 

GDP is a monetary measure of the market value of goods and services produced over the year in the country or the total expenditure on goods and services over the year or government expenditure. 
Hence, B is the correct option.

Multiple choice nutrition and health status introduction to tamil nadu economy tamil nadu economy food security and nutrition economics

The _____________________ refers to the total money value of all the goods and services produced annually in the State.

  1. Net National Product

  2. Gross Domestic Product

  3. Gross State Domestic Product

  4. Net Domestic Product
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Gross State Domestic Product (GSDP) is the specific economic measure used to represent the total monetary value of all goods and services produced within a state's boundaries annually.

Multiple choice civics public expenditure and public revenue black money and tax evasion meaning of tax direct taxes

GDP at factor cost is equal to GDP at market price minus indirect taxes plus __________.

  1. depreciation

  2. direct taxes

  3. foreign investments

  4. subsidies
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

$GDP _{fc} = GDP _{mp} - Indirect\ taxes + Subsidies$.
This is because market prices is reached by adding indirect taxes to the cost of production, i.e., factors of production, and deduction of subsidies provided, if any.

Multiple choice civics public expenditure and public revenue black money and tax evasion meaning of tax direct taxes

Net national product at market price minus net indirect taxes is equal to _______.

  1. net foreign investment

  2. net foreign investment plus net domestic investment

  3. net national product at factor cost

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

$NNP _{mp} - Net Indirect Taxes = NNP _{fc}$.
This is because the market price is the cost of production, i.e, factor cost, plus the taxes payable on the product.

Multiple choice civics public expenditure and public revenue black money and tax evasion meaning of tax direct taxes

In NNP figure is available at market prices we will__indirect taxes and
_subsidies to the figure to get National Income of the economy:

  1. Add, substract

  2. Add, divide

  3. Substract, add

  4. Substract, divide
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
National Income at Factor Cost (NIFC):
• It is the sum of all factors of income earned by the residents of a country (Indian) both from within the country as well as abroad.
• National Income at Factor Cost = NNP at Market Price – Indirect Taxes + Subsidies
 In India, and many developing countries across the world, National Income is measured at factor cost instead of market prices. Some of the reasons for the same are lack of uniformity in taxes, goods not being printed with their prices, etc.
Multiple choice social science poverty: an economic challenge for india meaning and measurement of poverty poverty : challenge facing india poverty as a challenge

Relative poverty means parity of income.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Relative poverty means disparity of income. It implies international economic inequalities and regional economic disparities. The National Sample Survey Organisation measures the population living below poverty line in India from time to time (generally every five years).

Multiple choice social science poverty: an economic challenge for india meaning and measurement of poverty poverty : challenge facing india poverty as a challenge

How can relative poverty be measured?

  1. Through maximum income.

  2. Through minimum income.

  3. Through definite income.

  4. Through average income
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Relative poverty can be measured through average income. It is the condition in which people lack the minimum amount of income needed in order to maintain the average standard of living in the society in which they live. The concept of relative poverty is used to measure the degree of poverty.

Multiple choice social science poverty: an economic challenge for india meaning and measurement of poverty poverty : challenge facing india poverty as a challenge

When Poverty is not related to the distribution of Income or Consumption Expenditure, it is called____.

  1. absolute poverty

  2. relative poverty

  3. either (a) or (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Absolute poverty is defined by a fixed threshold of basic needs, independent of the relative distribution of income or consumption within the broader population.

Multiple choice business mathematics and statistics introduction to index number introduction to index numbers index numbers applied statistics

Why do we need an index number?

  1. helpful in measuring changes in value of money

  2. helful for business community

  3. in measuring labour quality

  4. All the above
Reveal answer Fill a bubble to check yourself
A,B Correct answer
Explanation

We need an index number because it is helpful in measuring changes in value of money and it is also helpful for business community.