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

Under expenditure Method, Consumption Expenditure + Net Domestic Investment + Replacement Expenditure equals ______________.

  1. Gross Domestic Expenditure

  2. Gross National Expenditure

  3. Net Domestic Expenditure

  4. Net National Expenditure
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Gross Domestic Expenditure is the sum of consumption expenditure, net domestic investment, and replacement expenditure (depreciation).

Multiple choice economics measurement of national income methods of national income methods of measuring national income national income analysis

National income is the sum of factor incomes accruing to: 

  1. country

  2. Economic territory

  3. Residents

  4. Both residents and non-residents
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

National income is defined as the sum of factor incomes earned by the normal residents of a country, regardless of whether they are earned within or outside the domestic territory.

Multiple choice economics measurement of national income methods of national income methods of measuring national income national income analysis

Which of the following is a true statement?

i. National income refers to the income of individuals of a country

ii.The income at their disposal after paying direct taxes is called disposable income

 

  1. a. i only

  2. b. ii only

  3. c. both

  4. d. none
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Both the given statements are true which says that

National income refers to the income of individuals of a country

The income at their disposal after paying direct taxes is called disposable income

Multiple choice economics measurement of national income methods of national income methods of measuring national income national income analysis

National income at constant price is an estimate on the basis of base prices.

  1. True

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

National income at constant prices (also known as real national income) is calculated by valuing current production at the prices of a chosen base year to eliminate the effects of inflation.

Multiple choice economics measurement of national income methods of national income methods of measuring national income national income analysis

Which of the following items are-not included in estimating National income?

  1. Salary income of artists, dancers and singers.

  2. Income of smugglers.

  3. Payments to farm workers in foodgrains.

  4. Payments of bank interest for capital borrowed.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

National income accounting only includes income generated from legal, productive economic activities. Income from illegal activities, such as smuggling, is excluded because it is not reported and does not contribute to the official flow of goods and services.

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

Factor remunerations are the payments made by the consumer to purchase services from a firm.

  1. True

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

Factor remuneration refers to the payments which are done by the production sector to the private sector for hiring factor service i.e. capital, labour, land, and entrepreneurship in the form of interest, wages, rent, and profits respectively. 

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

The rate of capital formation is the ratio between the gross capital formation and gross domestic product at current prices.

  1. True

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

The rate of capital formation is the ratio between (the increase in fixed capital and inventories) and (the total value of good produced and services provided in a country during one year).

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

Capital-Output Ratio measures ________.

  1. its per unit cost of production

  2. the amount of capital invested per unit of output

  3. the ratio of capital depreciation to quantity of output

  4. the ratio of working capital employed to quantity of output
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is the amount of capital needed to produce one unit of output.

It represent the proportionate change in the amount of investment due to a fixed capital investment in an economy in a particular period of time.

Multiple choice economics concept of consumption function, saving function and investment function capital economy of a village wealth, capital and money

Ability to Save depends upon _________________.

  1. Average level of income

  2. Distribution of national income.

  3. Both (a) and (b)

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

The ability to save is fundamentally tied to the level of income available to individuals and how that income is distributed across the population. Higher income levels generally allow for more savings, and equitable distribution patterns influence the aggregate propensity to save.

Multiple choice

The value of all goods and services produced in a country?

  1. gross domain product

  2. gross domestic product

  3. gross domestic payment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Gross Domestic Product (GDP) is the standard economic measure of the value of all final goods and services produced within a country's borders during a specific period. The other options are incorrect terminology.

Multiple choice

What does GDP stand for?

  1. Gross Domestic Product

  2. Gross Development Product

  3. Great Day Pal

  4. Great Development Product
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

GDP stands for Gross Domestic Product, which measures the total monetary or market value of all finished goods and services produced within a country's borders in a specific time period. The other options are incorrect expansions of the acronym.