Which of the following is a feature of the 'Multidimensional Poverty Index'?
A. It measures only income poverty
B. It captures deprivations in health, education and living standards at the household level
C. It is based only on national accounts data
D. It measures only inequality
Answer: Option B
Solution (By JKSSB Mock Tests)
The Multidimensional Poverty Index identifies multiple overlapping deprivations suffered by households in the domains of health, education and living standards, providing a more comprehensive picture of poverty than income alone.
Explanation:
Terms of trade measure the relative prices of a country's exports to its imports, usually expressed as an index. An improvement means more imports can be obtained per unit of exports.
Explanation:
Invisible trade (or invisibles) includes trade in services (such as tourism, software, transportation), income (interest, dividends) and unilateral transfers.
Explanation:
Menu costs are the small costs of changing prices. New Keynesian models show that even small menu costs can generate substantial nominal rigidity and real effects of monetary policy.
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