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 dynamic of human development development indices various development indexes social development

Which of the following indexes is developed to measure life expectancy, level of literacy, education and standard of living of people in a country?

  1. Inflation

  2. Sensex

  3. Human Development Index

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

Human Development Index (HDI) provides an overall index of economic development. It assists one in knowing about the country’s progress.  HDI uses the logarithm of income to serve the purpose. HDI is developed to measure life expectancy, level of literacy, education and standard of living of people in a country.

Thus, the correct answer is C.

Multiple choice economics dynamic of human development development indices various development indexes social development

Which of the following is one of the indicators of Human Development Index (HDI)?

  1. Life expectancy at birth

  2. Total cost of the agricultural land with a family

  3. Total area of the agricultural land with a family

  4. Availability of perennial source of water for irrigation
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Human Development Index is an index which depicts the overall development of the economy. It helps one in knowing about the country’s progress. HDI uses various indicators to know human development.  These include life expectancy at birth, education and per-capita income.

Thus, the correct answer is A.

Multiple choice economics dynamic of human development development indices various development indexes social development

State with reasons whether the following statement is True or False
In HDI, GDP per capita is calculated as PPP in US dollars.

  1. True

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

Living standard is assessed by Gross National Income per capita, which forms the GNI index. It is calculated into the Human Development Index.GDP is considered a means for human development. However, it is not an end. Moreover, in HDI, GDP per capita is calculated as PPP in US Dollars.

Thus, the correct answer is A.

Multiple choice economics dynamic of human development development indices various development indexes social development

For measuring human well-being _______ index is used.

  1. HDI

  2. WPI

  3. CPI

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

Human Development Index (HDI) is important as it emphasizes that people and their capabilities should be the ultimate criteria in order to assess the development of a country and not only the economic growth. It uses the composite index of life expectancy, education, and per capita income indicators to measure the human well-being.

Thus, the correct answer is A.

Multiple choice economics dynamic of human development development indices various development indexes social development

HDI index does not include_________.

  1. income

  2. longevity

  3. health

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

HDI Index does not includes health as a component. HDI stands for Human Development Index. It can be defined as a statistic composite index of human development indicators, like, life expectancy, education, per capita income, etc. HDI helps to rank countries.

Multiple choice economics dynamic of human development development indices various development indexes social development

In order to measure the inequalities of income and wealth ______ index is used.

  1. GINI

  2. Dolor

  3. NASDAQ

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

In order to measure the inequalities of income and wealth GINI index is used. GINI coefficient or GINI Index was developed by an Italian scientist, Corrado Gini in the year of 1912. GINI Index can be defined as a method of statistical dispersion which is used to measure inequalities of income and wealth.

Multiple choice economics dynamic of human development development indices various development indexes social development

_______ is not an indicator of Human Development index.

  1. Life expectancy at birth

  2. Physical endurance

  3. GNP per capita

  4. Mean years of school
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Physical endurance is not a dimension of Human Development Index. HDI stands for Human Development Index. It can be defined as a statistic composite index of human development indicators, like, life expectancy, education, per capita income, etc. HDI helps to rank countries.

Multiple choice economics dynamic of human development development indices various development indexes social development

GINI index represent ______ perfectly inequality in distribution of income.

  1. 0

  2. 1

  3. 0.5

  4. 0.25
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

GINI index represent 1 perfectly inequality in distribution of income. GINI coefficient or GINI Index is developed by an Italian statistician, Corrado Gini. It can be defined as a statistical dispersion used to measure the inequality of wealth and income.

Multiple choice economics dynamic of human development development indices various development indexes social development

GINI index is measure of __________.

  1. increasing trend in national income

  2. sectoral classification

  3. degree of inequality in distribution of income and wealth

  4. per capita income by person resident in India
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

GINI Index is measure of degree of inequality in distribution of income and wealth. GINI coefficient or GINI Index is developed by an Italian statistician, Corrado Gini in the year of 1912. It is the most commonly used statistical method for measuring inequality of income and wealth.

Multiple choice economics dynamic of human development development indices various development indexes social development

Which of the following is used in the calculation of the HDI?

(I) Longevity of life 
(J) Knowledge 
(K) Standard of living. 

  1. (I)

  2. (J)

  3. (K)

  4. All
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Calculation of HDI includes:
a) Longevity of life
b) Knowledge
c) Standard of living
HDI stands for Human Development Index. It can be defined as a statistic composite index of human development indicators, like, life expectancy, education, per capita income, etc. HDI helps to rank countries.
Multiple choice economics dynamic of human development development indices various development indexes social development

HDI composes of human development indicator's:
(i) Longevity
(ii) Level of knowledge
(iii) Standard of living
(iv) Per capita income

  1. (i) only

  2. (i) and (ii)

  3. (i), (ii) and (iv)

  4. (i), (ii), (iii) and (iv)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

HDI composes of human development indicator's:
(i) Longevity
(ii) Level of knowledge
(iii) Percapita incomeHDI stands for Human Development Index. It can be defined as a statistic composite index of human development indicators, like, life expectancy, education, per capita income, etc. HDI helps to rank countries.

Multiple choice economics dynamic of human development development indices various development indexes social development

Human well being is measured by _______.

  1. Consumer Price Index (CPI)

  2. Human Resource Index (HRI)

  3. Human Development Index (HDI)

  4. Human Socio-benefit Index
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Human well being is measured by Human Development Index. It was developed by United Nation Development Programme( UNDP)HDI stands for Human Development Index. It can be defined as a statistic composite index of human development indicators, like, life expectancy, education, per capita income, etc. HDI helps to rank countries.

Multiple choice maths frequency distribution tables and graphs introduction to statistics introduction to statistical method and econometrics partition values

Which of the following operations is conducted after a gap of every ten years?

  1. Economic survey

  2. Estimates of Foreign Direct Investment (FDI)

  3. Compilation of Human Development Report

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

General census is official counting of a region's or nation's people and compilation of economics , social and other data usually for formulation of development policies and plans etc.

General census is an operation which is conducted after a gap of every ten years .

Multiple choice economics basic concepts of national income macroeconomic theories some basic concepts of macroeconomics introduction to macroeconomics

Net factor income from abroad is ________________.

  1. Exports minus Imports

  2. Visible Exports minus Visible Imports

  3. Factor income received from abroad minus factor income paid abroad

  4. Factor incomes received from abroad
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Net factor income from abroad is factor income received from abroad minus factor incomes paid abroad.
Equation:
Net factor income from abroad= Factor income earned by our residents from the rest of the world - Factor income earned by non- residents in our domestic territory.