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

A quantity index that is designed to measure changes in physical volume or production levels of industrial goods over time is known as the

  1. physical volume index

  2. time index

  3. Index of Industrial Production and Capacity Utilization

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

A quantity index that is designed to measure changes in physical volume or production levels of industrial goods over time is known as the Index of Industrial Production and Capacity Utilization.

Multiple choice economics consumption and investment functions keynesian law of consumption and propensity to consume ex ante and ex post concept of consumption function, saving function and investment function

What exactly does MPC (Marginal Propensity to Consume) communicate?

  1. MPC measures the change in the amount of consumption due to a change in income between two time periods.

  2. MPC measures the proportion of income devoted for consumption purposes in the specific period of time for which data is given.

  3. MPC measures the change in the amount of consumption due to a change in savings between two time periods.

  4. MPC measures the proportion of income devoted for saving purposes in the specific period of time for which data is given.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Consumption is dependent on income and thus, consumption changes with change in income. Marginal Propensity to Consume (MPC) refers to the change in consumption level that takes place due to an additional unit of income earned. 
Symbolically: $MPC=\dfrac{\text{Change in consumption}}{\text{Change in income}}$

Multiple choice rural development poverty rural economics economics

Poverty lines are expressed in terms of overall _______________.

  1. Per capita income

  2. Per capita consumption expenditure

  3. Per capita entertainment expenditure

  4. Per capita development expenditure
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice rural development poverty rural economics economics

Government uses __________ as proxy for income of households to identify the poor.

  1. per capita expenditure

  2. monthly per capita expenditure

  3. annual expenditure

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
The government uses Monthly Per Capita Expenditure (MPCE) as proxy for income of households to identify the poor.
This mechanism is helpful in identifying the poor as a group to be taken care of by the government, but it would be difficult to identify who among the poor need help the most.
Multiple choice rural development poverty rural economics economics

_______ is the mean distance below the poverty line expressed as a proportion of poverty line.

  1. Poverty Gap Index (PGI)

  2. HDI

  3. HDI-1

  4. GDI
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Poverty Gap Index (PGI) measures the average shortfall of the total population from the poverty line, expressed as a proportion of the poverty line.

Multiple choice business economics and quantitative methods introduction to managerial economics theories of employment and income concept of international trade macro economic analysis

What is GDP?

  1. Gross Daily Production

  2. Gross Domestic Production

  3. Gross Domestic Power

  4. Gross Development Production
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Gross Domestic Production. Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time. GDP per capita is often considered an indicator of a country's standard of living.

Multiple choice social science poverty : challenge facing india programmes for poverty eradication poverty as a challenge poverty: an economic challenge for india public health and the government constraints in economic development of rajasthan

In order to measure the inequalities of income and wealth which index is used?

  1. Gini coefficient

  2. Dollar

  3. NASDAQ

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

The Gini coefficient is a statistical measure of distribution intended to represent the income inequality or wealth inequality within a nation.

Multiple choice social science poverty : challenge facing india programmes for poverty eradication poverty as a challenge poverty: an economic challenge for india public health and the government constraints in economic development of rajasthan

Which of the following means relative poverty?

  1. The number of people living below a certain income threshold.

  2. The number of households unable to afford certain basic goods and services.

  3. The extent to which a household's financial resources fall below a certain average income threshold given for the economy.

  4. People given poverty certificates by the government.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Relative poverty measures the inequality of income distribution, comparing a household's resources to the average income level of the society.

Multiple choice social science poverty : challenge facing india programmes for poverty eradication poverty as a challenge poverty: an economic challenge for india public health and the government constraints in economic development of rajasthan

_____________ poverty can be considered in two senses, namely, 'absolute poverty' and 'relative poverty'.

  1. Income

  2. Human

  3. Social

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

Economic poverty is broadly categorized into absolute poverty, which relates to basic survival, and relative poverty, which relates to societal income distribution.

Multiple choice social science poverty : challenge facing india programmes for poverty eradication poverty as a challenge poverty: an economic challenge for india public health and the government constraints in economic development of rajasthan

What is the criterion for the measurement of poverty line?

  1. Caloric consumption

  2. Unemployment rate

  3. Literacy level

  4. Type of dwellings
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The poverty line is calculated based on the caloric requirements of adults (working class) in rural and urban areas. In rural areas it is 2400 calories and in urban areas it is 2100 calories. The poverty line is estimated periodically (normally every five years) by conducting sample surveys. These surveys are carried out by the National Sample Survey Organisation (NSSO). However, for making comparisons between developing countries, many international organisations like the World Bank use a uniform standard for the poverty line: minimum availability of the equivalent of $1 per person per day.

Multiple choice social science poverty : challenge facing india programmes for poverty eradication poverty as a challenge poverty: an economic challenge for india public health and the government constraints in economic development of rajasthan

Minimum Standard of living is identified in the determination of____.

  1. absolute poverty

  2. relative poverty

  3. both (a) and (b)

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

Absolute poverty is defined by the inability to meet a minimum standard of living, often quantified by a basket of essential goods.

Multiple choice social science the problem of poverty in india programmes for poverty eradication poverty : challenge facing india poverty as a challenge public health and the government constraints in economic development of rajasthan

When poverty is related to distribution of income or consumption expenditure, it is __________.

  1. absolute poverty

  2. relative poverty

  3. both of above

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

Relative poverty focuses on the inequality of income or consumption distribution, comparing the poor to the rest of the population rather than a fixed survival threshold.

Multiple choice economics parameters (indicators) of development human development and human development index (hdi) hdi dynamic of human development

HDI combines economic and ________ indicators.

  1. social

  2. cultural

  3. regional

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

Human Development Index is a measure of human development over the years which includes per capita income for evaluating the utility which people get from different products, life expectancy which measures the progress made in health and nutrition and educational levels.

Multiple choice economics parameters (indicators) of development human development and human development index (hdi) hdi dynamic of human development

UNDP has constructed ______________ so as to reflect inequalities between men and women with regard to life expectancy, knowledge and standard of living. 

  1. Human Poverty Index

  2. Human Development Index (HDI)

  3. Both A & B

  4. Gender-related Development Index
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Gender-related Development Index (GDI) was specifically designed by the UNDP to adjust the HDI for gender inequalities in health, education, and income.