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 social science employment: growth, informalisation and other issues employment - trends and structure workers and employment sources of income

Worker-population ratio is useful in ________.

  1. knowing the proportion of the population that is actively contributing to the production of goods and services of a country

  2. estimating national income

  3. estimating GDP

  4. knowing the number of people employed
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Worker-population ratio is useful in knowing the proportion of population that is actively contributing to the production of goods and services of a country.  Employment situation does not help in calculating National income or GDP.
Multiple choice economics poverty as a challenge programmes for poverty eradication poverty : challenge facing india poverty: an economic challenge for india constraints in economic development of rajasthan

The concept of _________ is used in India to measure the extent of poverty in India.

  1. income poverty

  2. poverty line

  3. poverty scale

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

The poverty line is the official threshold used in India to identify the population living in poverty based on consumption or income levels.

Multiple choice economics development experience (1947-90) development indices various development indexes dynamic of human development

Standard of living is measured by __________.

  1. HDI

  2. FDI

  3. FBI

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

A standard of living is the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or a certain geographic area. The standard of living includes factors such as income, gross domestic product, national economic growth, economic and political stability, political and religious freedom, environmental quality, climate, and safety. The standard of living is closely related to quality of life.It is measured by HDI.

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

Which of the following is not a component of Human Development Index?

  1. Per Capita Income

  2. Life Expectancy Rate

  3. Literacy Rate

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

Human Development Index is an important component in the Human Development Report. Per Capita Income is an important component of HDI. It is the average income of a country. Also, life expectancy at birth which is the expected length of life at the time of birth is an important component. Moreover, the literacy rate for 15+ years of the population is useful in HDI.

Thus, the correct answer is D.

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

Human Development Index is a composite of _________.

  1. income, trade and investment indicators

  2. poverty, human rights and unemployment indicators

  3. income, health and education indicators

  4. health, education and quality of life indicators
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development.

Multiple choice geography international development international development and world population and its impact on resources population growth and impact on resources reproductive health in humans

During the year $2013$, the real gross domestic product of a country increased by $8\%$ over the preceding year. During this year population of the country also got increased by $1.6\%$. In that particular country, the rate of growth of per capita income during $2013$ would be: 

  1. $6.4%$
  2. $9.6\%$
  3. $5.0\%$
  4. $12.8\%$
Reveal answer Fill a bubble to check yourself
C Correct answer
Multiple choice economics theories of distribution unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

The two approaches to determination of the equilibrium level of income are:

  1. Aggregate demand-Aggregate supply approach

  2. Saving-Investment approach

  3. Demand-Supply approach

  4. Both A & B
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Two approaches are:

1) Aggregate demand-Aggregate supply approach-
An economy is in equilibrium when aggregate demand for goods and services is equal to aggregate supply during a period of time.

So, equilibrium is achieved when:

AD = AS … (1)

We know, AD is the sum total of Consumption (C) and Investment (I):

AD = C + I … (2)

Also, AS is the sum total of consumption (C) and saving (S):

AS = C + S … (3)

Substituting (2) and (3) in (1), we get:

C + S = C + I.....(4)

2)Saving-Investment approach 

According to this approach, the equilibrium level of income is determined at a level, when planned saving (S) is equal to planned investment (I).

from equation( 4)

 S = I

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

The ___________ net earning from foreign trade is added to the national income of the country.

  1. positive

  2. negative

  3. constant

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

Import refers to purchasing of goods and services from international market in the country and export refers to selling goods and services in the international market. So export is an income for the country whereas import is an expense for the country. Therefore, when export is higher than imports then the net earnings from the trade of a country is positive which in added to the national income of the economy. 

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

When the net earning from foreign trade is zero, it largely impacts the national income.

  1. True

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

Import refers to purchasing of goods and services from international market in the country and export refers to selling goods and services in the international market. So export is an income for the country whereas import is an expense for the country. Therefore, when export is equal to imports then the net earnings from the trade of a country is zero which does not impact the national income as the earnings from foreign trade is added to the national income of an economy. 

Multiple choice economics economics of development and planning economics of planning objectives of economic planning in india major economic problems

A measure of the physical quantity of the goods or services produced through a government scheme or programme is called ______________.

  1. Outlay

  2. Output

  3. Outcome

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

A measure of the physical quantity of the goods or services produced through a government scheme or programme is called output.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

If the total income of the country is divided by the total population, then the obtained total average income of an individual is known as _______.

  1. Annual income

  2. Per capita income

  3. Daily income

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

Per capita income is a measure of the amount of money earned per person in a certain area. It helps us address issues like the quality of life and the living conditions we can expect for specific areas.It can be calculated for a country by dividing the country's national income by its population.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

Per Capita consumption shows the standard of living.

  1. True

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

The increase in consumption of goods and services by the people is measured in PCC. Example clothing, food, education, health etc. An increase in PCC shows  better standard of living,better quality of life of people and higher economic development of the country.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

An increase in national income does not represent improvement in the standard of living, since, if increase in ___________ surpasses the growth in national income, the per capita income will fall.

  1. employment level

  2. population

  3. income level

  4. number of industries
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Per capita income is calculated as national income divided by population. If the population grows faster than the national income, the average income per person decreases, even if the total national income has risen.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

Economic growth is an increase in the national income which is corrected for _____________, i.e, per capital income.

  1. population change

  2. employment level

  3. inflation

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

Economic growth is measured by per capita income, which adjusts the total national income by dividing it by the population to account for changes in the number of people sharing that income.

Multiple choice geography economic growth and development development and growth need for sustainable development economics of development

The measure of economic growth is not limited to increase in the national income, rather it focuses on increase in ____________.

  1. per capita income

  2. employment level

  3. poverty

  4. both A & C
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Economic growth refers to the process of using natural resources for the development of the economy in order to increase the per capita income of the economy. The growth mainly measures the per capita income rather than the overall income of the economy.