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 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.

Multiple choice international experience of exchange rate systems open economy macroeconomics international economics economics

Many times we read about 'PPP' in economic literature. What is PPP?

  1. Tells us the exchange rates between currencies are in equilibrium when their purchasing power is the same in both the countries

  2. It tells us the exchange rates between currencies are in equilibrium when they are adjusted for differences in purchasing power.
  3. PPP means the current exchange rate of a currency against US$

  4. A measure of income inequality in developing countries
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The acronym PPP stands for, "Purchasing Power Parity". It is a method of currency valuation that tells us that the exchange rate between two countries must be equal to the ratio of the currencies' respective purchasing power. ie. two identical goods should eventually cost the same in different countries once adjusted for purchasing power parity.

Multiple choice statistics data handling analysis bar charts frequency table and diagrams bar diagram

When comparing income and expenditure or import and export for different years, marks obtained in etc. _______ bar diagrams are used.

  1. multiple

  2. simple

  3. component

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

Multiple bar diagrams are specifically designed to compare two or more related variables across different categories or time periods.

Multiple choice geography manufacturing industries in india - i : agro-based location of industries distribution and classification of industries in india industrialisation and industrial belts

The economic strength of the country is measured by which of the following developments?

  1. The development of the manufacturing industries

  2. The development of the literacy ratio

  3. The development of the health status

  4. The development of the population growth
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The development of the manufacturing industries.

Multiple choice social science poverty : challenge facing india strategy for poverty eradication programmes for poverty eradication poverty as a challenge

Gini Index is a measure of ________.

  1. distribution of wealth among individuals

  2. inequality of distribution of income/consumption of individual

  3. equality of distribution of income/consumption of individuals.

  4. level of well being of individuals
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Gini Index is a statistical measure of economic inequality. It quantifies the distribution of income or consumption among individuals in a population, where 0 represents perfect equality and 1 represents perfect inequality.

Multiple choice social science poverty : challenge facing india strategy for poverty eradication programmes for poverty eradication poverty as a challenge

_____________ is set at the level of consumption expenditure per person required for the minimum calorie intake.

  1. Malnutrition

  2. Poverty line

  3. Unemployment level

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

The poverty line is defined as the minimum level of income or consumption expenditure required to meet basic needs, specifically the minimum calorie intake necessary for survival.

Multiple choice social science poverty : challenge facing india strategy for poverty eradication programmes for poverty eradication poverty as a challenge

The extent of poverty, in India, is measured by _________, i.e, estimating the number of persons falling below poverty line and measuring them as a proportion of population. 

  1. headcount ratio

  2. population ratio

  3. both 'a and b'

  4. neither 'a nor b'
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The headcount ratio is the standard method for measuring poverty, calculated by dividing the number of people below the poverty line by the total population.

Multiple choice social science poverty : challenge facing india strategy for poverty eradication programmes for poverty eradication poverty as a challenge

 __________ measures the extent to which distribution of income/consumption among household or individual within the economy deviate from the perfectly equal distribution.

  1. Gini coefficient

  2. CPI

  3. NASDAQ

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

The Gini coefficient is a mathematical measure of statistical dispersion intended to represent the income or wealth distribution of a nation's residents, and is the most commonly used measure of inequality.

Multiple choice social science poverty : challenge facing india strategy for poverty eradication programmes for poverty eradication poverty as a challenge

____ Index measures the extent to which distribution of income/consumption among household or individual within the economy deviates from the perfectly equal distribution.

  1. GINI

  2. Dolor

  3. NASDAQ

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

The Gini Index (or Gini coefficient) measures income/consumption inequality. This question is essentially a duplicate of 535938 with slight rewording. Gini is the correct answer - 'Dolor' is not an economic index, NASDAQ is a stock market index.