#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
What is the poverty gap index?
A measure that assesses the severity of poverty by considering how far below the poverty line people fall, on average.
ExplanationQuantifies the average shortfall from the poverty line among those below it.
#9
Which of the following is a commonly used measure to assess poverty at the international level?
Human Poverty Index (HPI)
ExplanationAssesses deprivation beyond income, including education and life expectancy.
#10
What is the concept of 'intergenerational poverty'?
Poverty that affects multiple generations within a family
ExplanationPoverty perpetuated through family lines, impacting successive generations.
#11
What is the concept of 'urban poverty'?
Poverty concentrated in urban areas due to factors like unemployment and high living costs
ExplanationEconomic deprivation primarily affecting urban populations.
#12
Which of the following is NOT a commonly used indicator to measure poverty?
Employment rate
ExplanationEmployment rate is a factor influencing poverty but isn't a direct measure of poverty itself.
#13
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.
#14
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.
#15
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.
#16
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.
#17
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.
#18
Which of the following factors does the Gender Inequality Index (GII) take into account?
All of the above
ExplanationGII considers reproductive health, empowerment, and labor market participation.
#19
What is the concept of 'chronic poverty'?
Persistent poverty experienced over an extended period of time
ExplanationLong-term state of deprivation and economic hardship.
#20
Which of the following statements best describes 'food insecurity'?
The uncertainty about the availability of food and one's ability to access it
ExplanationLack of reliable access to sufficient and nutritious food.
#21
What does the Poverty Reduction Strategy Paper (PRSP) aim to do?
Develop comprehensive strategies for reducing poverty in low-income countries
ExplanationPlans to address poverty through policy, economic, and social reforms.
#22
Which of the following is a limitation of using income-based measures to assess poverty?
They do not consider the distribution of resources within households
ExplanationFails to account for disparities in resource allocation within families.
#23
What is the concept of 'income mobility'?
The movement of individuals or households between income brackets over time
ExplanationRefers to changes in income status over a period, indicating economic progress or regress.
#24
What is the 'feminization of poverty'?
The disproportionate representation of women among the world's poor
ExplanationHigher incidence of poverty among women compared to men.
#25
What is the 'poverty trap'?
A situation where individuals are unable to escape poverty due to various constraints
ExplanationConditions or factors that perpetuate poverty, making it difficult to break free.