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

A mere increase in ____________ is not considered economic growth.

  1. per capita income

  2. GDP

  3. GNP

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

GDP and GNP are measures of total national output. Without accounting for population growth, an increase in these figures does not necessarily mean that the average citizen is better off, so they are not sufficient indicators of economic growth on their own.

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

Economic growth is measured in terms of ____________ of the economy.

  1. employment aggregates

  2. national income aggregates

  3. both A & B

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

National Income refers to the income of the whole economy including all the sectors at a given point of time. It only estimates the income of all the sectors and does not say the exact figure as it is impossible to tell the exact income figure of an economy. Therefore, national income is only the imputed figure of the income of the economy. Economic growth of any nation is measured in national income aggregates of that nation.

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

Which among the following is a limitation of per capita income?

  1. Neglects composition of national output.

  2. Ignores distribution of income.

  3. Social costs are not accounted for.

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

Per capita income is an average that hides income distribution, ignores the composition of goods produced, and fails to account for social costs like pollution or health outcomes.

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

Per capita income fails to measure development in various aspects such as the ___________ dimensions of the country.

  1. social

  2. human

  3. institutional

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

Per capita income is a purely monetary metric. It fails to capture social, human, and institutional dimensions, such as literacy, life expectancy, and political freedom.

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

_____________ is the measure of output per head of population.

  1. Head-count ratio

  2. Per capita income (PCI)

  3. GNP

  4. Human development index (HDI)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Per capita income is calculated by dividing the total national income (or output) by the total population, providing a measure of average income per person.

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

Real per capita income is a partial index of economic development and economic welfare.

  1. True

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

Real per capita income provides some information about economic capacity, but it is only a partial index because it ignores distribution, social welfare, and other non-monetary aspects of development.

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

Per Capita income is obtained by dividing National Income by _________________.

  1. Total population of the country

  2. Total working population

  3. Area of the country

  4. Volume of the capital used
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Per capita income is obtained by dividing national income by total population of the country per capita income by total population of the country. Per capita income, also known as income per person, is the mean income of the people in a country. 

It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.

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

Identify the problems related with the use of per capita income index to compare the standard of living, economic growth and welfare between different countries.

  1. Problem of expression of national income of different countries in one currency.

  2. Different concepts of national income measurement are used in different countries.

  3. Difficulty in measuring standard of living of different countries due to differing price levels.

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

Comparing per capita income across countries is difficult due to currency conversion issues, different methodologies for calculating national income, and varying purchasing power (price levels).

Multiple choice some mathematical tools used in economics step towards making a project basic statistics for economics economics

Which of the following statement is not correct?

  1. The money spent on the sample in collecting information is more than that is spent on population

  2. In an under developed economy, census method cannot be adopted because of the heavy cost

  3. The accuracy of the census method is tested by the information obtained by the sample method

  4. The error that occur in the study of the sample may be determined and steps may be taken to reduce it
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

As population is large in size as compared to samples. So, the money spent on gathering information through census is a costly affair than sampling.

Multiple choice social science food security in india need for nregs rural development and employment guarantee scheme food security and nutrition

To measure hunger, recently an index called ________ is being used as a yardstick.

  1. Poverty line

  2. World Hunger Index

  3. World hunger list

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

The Global Hunger Index (GHI) is a multidimensional statistical tool used to describe the state of countries' hunger situation. The GHI measures progress and failures in the global fight against hunger. The GHI is updated once a year.

Multiple choice social science government and taxes types of tax types of taxes government budget and taxation

GDP at factor cost = ___________.

  1. GDP at market price + Subsidies

  2. GDP at market price + Subsidies - Indirect tax

  3. GDP at market price - Subsidies - Indirect tax

  4. GDP at market price + Subsidies + Indirect tax
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

GDP at factor cost is calculated by taking GDP at market price, subtracting indirect taxes, and adding subsidies, as market prices include the tax burden and exclude government subsidies.

Multiple choice commercial studies company final accounts forms of statements of profit and loss operating profit (ebit) meaning, need and format of profit and loss account

__________ is the gross inflow of economic benefits.

  1. Assets

  2. Liabilities

  3. Income

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

Income is defined as the increase in economic benefits during the accounting period in the form of inflows or enhancements of assets. Assets, liabilities, and expenses represent different categories of the accounting equation.

Multiple choice business economics and quantitative methods measurement of national income methods of national income methods of measuring national income national income analysis

Are the following statements true or false? Give reasons.
Production of services for self-consumption are not included in national income. 

  1. True

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

Such services are not included in national income as It is difficult to ascertain their market value and they are not rendered for earning income.