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 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 defined as a situation in which _______.

  1. a person earns below Rs 5,000 p.m

  2. a person earns below Rs 7,000 p.m

  3. a person is able to fulfill their basic maximum requirement of life

  4. a person is unable to fulfill even their basic minimum requirements of life
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Poverty is fundamentally defined as the inability to meet basic minimum requirements for survival, such as food, clothing, and shelter.

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.

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

The formula to calculate human development index is:

  1. Human Development = $\dfrac{Actual\ value - Minimum\ value}{Maximum\ value - Minimum\ value}$
  2. Human Development = $\dfrac{Actual\ value + Minimum\ value}{Maximum\ value - Minimum\ value}$
  3. Human Development = $\dfrac{Maximum\ value - Minimum\ value}{Maximum\ value + Minimum\ value}$
  4. Human Development = $\dfrac{Actual\ value - Minimum\ value}{Actual\ value + Minimum\ value}$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The HDI is calculated using a normalization formula: (Actual Value - Minimum Value) / (Maximum Value - Minimum Value). This scales each indicator between 0 and 1.

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

HDI takes into account ___________ variables of human development.

  1. three

  2. five

  3. two

  4. one
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 three aspects which are 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

____________, which is used as a variable to measure knowledge aspect of HDI, is the number of years of schooling that a child of school entrance age can expect to receive.

  1. Mean years of education

  2. Expected years of schooling

  3. Expected level of education

  4. Expected years of education
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Expected years of schooling is defined as the number of years of schooling that a child of school entrance age can expect to receive if prevailing patterns of age-specific enrollment rates stay the same.

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

The knowledge aspect of HDI takes in to account ______________.

  1. Mean years of schooling

  2. Expected years of schooling

  3. Both A & B

  4. Neither A nor B
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The knowledge dimension of the HDI is measured by two indicators: Mean years of schooling (for adults) and Expected years of schooling (for children).

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

Mean years of schooling, which is used as a variable to measure knowledge aspect of HDI, is the average number of years of education received by adults aged ________ and above.

  1. 18

  2. 21

  3. 25

  4. 16
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Mean years of schooling is calculated as the average number of years of education received by people aged 25 and older, based on educational attainment levels.

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

High human development group includes the countries with a HDI value of _______.

  1. 0.8 and above

  2. 0.5 and above

  3. less than 0.5

  4. same as above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to the Human Development Report classification, countries with an HDI value of 0.8 and above are categorized as having very high human development.