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Poverty and Income Distribution: Concepts and Measurement

Description: This quiz covers the concepts and measurement of poverty and income distribution. It explores various definitions, methodologies, and challenges associated with assessing and understanding poverty and income inequality.
Number of Questions: 15
Created by:
Tags: poverty income distribution economic inequality measurement techniques poverty lines gini coefficient lorenz curve
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Which of the following is a commonly used absolute poverty line?

  1. The World Bank's $1.90 per day poverty line

  2. The United Nations' $2 per day poverty line

  3. The Indian government's ₹32 per day poverty line

  4. The European Union's €60 per day poverty line


Correct Option: A
Explanation:

The World Bank's $1.90 per day poverty line is a widely used absolute poverty line, representing the minimum income required to meet basic needs.

What is the main purpose of the Lorenz Curve?

  1. To illustrate the distribution of income or wealth among a population

  2. To calculate the Gini coefficient

  3. To determine the poverty rate

  4. To measure the level of economic growth


Correct Option: A
Explanation:

The Lorenz Curve is a graphical representation of the cumulative distribution of income or wealth in a population, showing the proportion of total income or wealth held by each percentage of the population.

Which of the following is a measure of income inequality?

  1. Gini coefficient

  2. Lorenz Curve

  3. Poverty rate

  4. Human Development Index


Correct Option: A
Explanation:

The Gini coefficient is a commonly used measure of income inequality, ranging from 0 to 1, where 0 represents perfect equality and 1 represents perfect inequality.

What is the main challenge in measuring poverty?

  1. Defining a universal poverty line

  2. Collecting accurate data on income and expenditure

  3. Accounting for non-monetary factors

  4. All of the above


Correct Option: D
Explanation:

Measuring poverty involves several challenges, including defining a universal poverty line, collecting accurate data on income and expenditure, and accounting for non-monetary factors such as access to education, healthcare, and sanitation.

Which of the following is a relative poverty line?

  1. The World Bank's $1.90 per day poverty line

  2. The United Nations' $2 per day poverty line

  3. The Indian government's ₹32 per day poverty line

  4. 50% of the median income


Correct Option: D
Explanation:

A relative poverty line is defined as a certain percentage of the median income, typically 50% or 60%, and is used to measure poverty in relation to the overall income distribution.

What is the main purpose of the Human Development Index (HDI)?

  1. To measure poverty

  2. To measure income inequality

  3. To measure economic growth

  4. To measure human well-being


Correct Option: D
Explanation:

The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators, used to measure human well-being and development.

Which of the following is a multidimensional poverty measure?

  1. Headcount ratio

  2. Poverty gap index

  3. Gini coefficient

  4. Multidimensional Poverty Index (MPI)


Correct Option: D
Explanation:

The Multidimensional Poverty Index (MPI) is a multidimensional poverty measure that considers multiple deprivations in health, education, and living standards.

What is the main challenge in measuring income inequality?

  1. Defining a universal measure of inequality

  2. Collecting accurate data on income and wealth

  3. Accounting for non-monetary factors

  4. All of the above


Correct Option: D
Explanation:

Measuring income inequality involves several challenges, including defining a universal measure of inequality, collecting accurate data on income and wealth, and accounting for non-monetary factors such as access to education, healthcare, and sanitation.

Which of the following is a commonly used poverty line in India?

  1. The World Bank's $1.90 per day poverty line

  2. The United Nations' $2 per day poverty line

  3. The Indian government's ₹32 per day poverty line

  4. The European Union's €60 per day poverty line


Correct Option: C
Explanation:

The Indian government's ₹32 per day poverty line is a commonly used poverty line in India, representing the minimum income required to meet basic needs.

What is the main purpose of the poverty gap index?

  1. To measure the average income shortfall of the poor

  2. To measure the proportion of the population below the poverty line

  3. To measure the income inequality

  4. To measure the human well-being


Correct Option: A
Explanation:

The poverty gap index measures the average income shortfall of the poor, representing the average difference between the poverty line and the income of the poor.

Which of the following is a commonly used measure of poverty?

  1. Headcount ratio

  2. Poverty gap index

  3. Gini coefficient

  4. Human Development Index


Correct Option: A
Explanation:

The headcount ratio is a commonly used measure of poverty, representing the proportion of the population living below the poverty line.

What is the main challenge in measuring human well-being?

  1. Defining a universal measure of well-being

  2. Collecting accurate data on various dimensions of well-being

  3. Accounting for non-monetary factors

  4. All of the above


Correct Option: D
Explanation:

Measuring human well-being involves several challenges, including defining a universal measure of well-being, collecting accurate data on various dimensions of well-being, and accounting for non-monetary factors such as happiness, life satisfaction, and social inclusion.

Which of the following is a commonly used measure of economic inequality?

  1. Gini coefficient

  2. Lorenz Curve

  3. Headcount ratio

  4. Poverty gap index


Correct Option: A
Explanation:

The Gini coefficient is a commonly used measure of economic inequality, ranging from 0 to 1, where 0 represents perfect equality and 1 represents perfect inequality.

What is the main purpose of the Human Poverty Index (HPI)?

  1. To measure poverty

  2. To measure income inequality

  3. To measure economic growth

  4. To measure human well-being


Correct Option: D
Explanation:

The Human Poverty Index (HPI) is a composite statistic of life expectancy, education, and living standards indicators, used to measure human well-being and development.

Which of the following is a commonly used measure of multidimensional poverty?

  1. Headcount ratio

  2. Poverty gap index

  3. Gini coefficient

  4. Multidimensional Poverty Index (MPI)


Correct Option: D
Explanation:

The Multidimensional Poverty Index (MPI) is a multidimensional poverty measure that considers multiple deprivations in health, education, and living standards.

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