Which of the following is a measure of absolute poverty commonly used in India? MCQ with Answer and Explanation

Which of the following is a measure of absolute poverty commonly used in India?
A. Gini coefficient
B. Poverty line based on calorie norms and consumption expenditure
C. Relative income share of the bottom 10%
D. Lorenz curve
Answer: Option B
Solution (By JKSSB Mock Tests)
India has traditionally used a poverty line based on minimum calorie requirements and corresponding consumption expenditure to measure absolute poverty.

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Practice More Economy Set 1 Questions

Question #1
In the Cobb-Douglas production function Q = A L^α K^β, if α + β = 1, the production function exhibits:
A. negative returns
B. increasing returns to scale
C. constant returns to scale
D. decreasing returns to scale

Correct Answer: Option C


Explanation:
If α + β = 1, the Cobb-Douglas production function exhibits constant returns to scale.

This question belongs to: Economy GK Economy Set 1
Question #2
The term 'Primary Deficit' indicates:
A. Budgetary deficit only
B. Fiscal deficit including interest payments
C. Revenue deficit excluding interest payments
D. Fiscal deficit excluding interest payments

Correct Answer: Option D


Explanation:
Primary deficit = Fiscal deficit − Interest payments. It shows the borrowing requirement of the government excluding the interest burden of past debt.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Think Tank' of the Government of India for economic policy is:
A. RBI
B. Finance Commission
C. SEBI
D. NITI Aayog

Correct Answer: Option D


Explanation:
NITI Aayog acts as the premier policy think tank of the Government of India.

This question belongs to: Economy GK Economy Set 1