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 economics the problem of poverty in india constraints in economic development of rajasthan programmes for poverty eradication poverty : challenge facing india poverty as a challenge

Select the incorrect statement related to the estimation of poverty in India, using the code given below:
1. The poverty line in India is income based.
2. The poverty line was originally fixed in terms of income/food requirements in 1978.
3. Food requirement was based on calorie standard for individuals in rural and urban areas in 1980-the cost of procuring the foodgrains equivalent calorie was fixed as the poverty line.

  1. 1 and 2

  2. 2 and 3

  3. 1 and 3

  4. 1,2 and 3
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Calorie intake was made the basic for determining poverty in 1978 itself. It was stipulated that the calorie standard for a typical individual in rural areas were 2400 calories and was 2100 calories in urban areas. Two committees under the chairmanships of Prof. Suresh D. Tendulkar and Dr. N.C. Saxena have submitted their reports on methodology for estimation of poverty and methodology for conducting BPL census in rural areas, respectively. Presently, NITI Aayog is working on a new methodology.

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 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

Poverty line is determined in terms of minimum nutritional level of food energy required for subsistence which is expressed in terms of ______________.

  1. daily intake of calories

  2. weekly intake of calories

  3. daily intake of protein

  4. daily intake of energy values
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The poverty line is determined by the cost of food required to meet a specific daily calorie intake, which serves as a proxy for minimum nutritional subsistence.

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

What is the average calories required in rural areas for measuring poverty?

  1. 2400 calories per day

  2. 2500 calories per day

  3. 2100 calories per day

  4. 2300 calories per day
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

To check the poverty line, daily consumption of food is checked along with income and spending of an individual. The threshold for food consumption has been set to 2400 calories per day in rural areas below which the individual is considered as poor.

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

What is the average calories required in urban areas for measuring poverty?

  1. 2400 calories per day

  2. 2600 calories per day

  3. 2100 calories per day

  4. 2200 calories per day
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

To check the poverty line, daily consumption of food is checked along with income and spending of an individual. The threshold for food consumption has been set to 2100 calories per day in urban areas below which the individual is considered as poor.

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.

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

Inequalities in Distribution of Income are identified in the  determination of___.

  1. absolute poverty

  2. relative poverty

  3. both (a) and (b)

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

Relative poverty is concerned with the distribution of income and wealth across the population. It measures the gap between the rich and the poor rather than a fixed subsistence level.

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

Which of the following statements is correct?

  1. Gini Coefficient are often used for measuring poverty in relative sense.

  2. When Poverty is related to the distribution of income or consumption expenditure, it is Absolute poverty.

  3. In India, we mainly use the concept of Relative Poverty for measuring poverty.

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

The Gini coefficient is indeed a standard metric for measuring income inequality, which is central to the concept of relative poverty.