#1
Which of the following is a commonly used measure of economic inequality?
Gini coefficient
ExplanationQuantifies the distribution of income or wealth among a population.
#2
In economics, what does the term 'absolute poverty' refer to?
When a person's income is below a certain level necessary to meet basic needs
ExplanationIndicates lack of resources to fulfill essential requirements like food, shelter, and clothing.
#3
Which of the following is not considered a factor contributing to economic disparities?
Political stability
ExplanationPolitical stability generally doesn't directly affect economic disparities.
#4
What is the poverty line?
A threshold below which a person or family is considered to be lacking the resources to meet the basic needs for healthy living
ExplanationDefines the minimum income required for a standard of living that covers basic necessities.
#5
Which of the following is a measure used to assess multidimensional poverty?
Human Development Index (HDI)
ExplanationConsiders various factors beyond income, including education and healthcare.
#6
What does the term 'relative poverty' refer to?
When a person's income is lower than the average income of a particular country
ExplanationIndicates income below the average within a specific societal context.
#7
Which of the following is a common indicator used to measure income inequality?
Gini coefficient
ExplanationOffers a numerical measure of income or wealth distribution within a population.
#8
Which of the following is a drawback of using GDP per capita as a measure of poverty?
It does not account for income inequality within a country
ExplanationFails to consider how wealth is distributed among individuals.
#9
Which of the following is NOT a component of the Multidimensional Poverty Index (MPI)?
Income
ExplanationMPI includes aspects like health, education, and living standards but excludes income.
#10
What does the Lorenz curve illustrate in economics?
The distribution of wealth within a population
ExplanationGraphically represents the distribution of income or wealth among individuals.
#11
What is the difference between absolute and relative poverty?
Absolute poverty refers to a fixed threshold of income, while relative poverty compares one's income to others in society.
ExplanationAbsolute poverty signifies an absolute lack of resources, while relative poverty is comparative.
#12
What is the HDI (Human Development Index) used for?
To evaluate overall human well-being
ExplanationConsiders factors like life expectancy, education, and income to assess quality of life.