Which of the following is a measure of relative poverty? MCQ with Answer and Explanation

Which of the following is a measure of relative poverty?
A. Poverty line based on minimum calorie intake
B. Income share of the bottom quintile relative to the top
C. Absolute number of poor people
D. Percentage of population below a fixed income threshold
Answer: Option B
Solution (By JKSSB Mock Tests)
Relative poverty is measured in relation to the overall distribution of income in society, such as the income share of the poorest relative to the richest.

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Practice More Economy Set 1 Questions

Question #1
A 'public good' is characterized by:
A. non-excludability and rivalry
B. excludability and rivalry
C. non-excludability and non-rivalry
D. excludability and non-rivalry

Correct Answer: Option C


Explanation:
Public goods are non-excludable and non-rivalrous.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' compensation cess is collected by:
A. state governments
B. local bodies
C. GST council
D. central government

Correct Answer: Option D


Explanation:
Compensation cess is collected by the central government.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a characteristic of the 'Sudden Stop' literature?
A. Capital-flow reversals are always gradual and benign
B. Abrupt reversals of capital inflows can cause large real depreciations, output collapses and financial crises
C. Capital flows never reverse
D. Only trade shocks matter

Correct Answer: Option B


Explanation:
Sudden-stop models analyse the macroeconomic and financial consequences of large and abrupt reversals in capital inflows, which often trigger currency crises, credit contractions and sharp recessions.

This question belongs to: Economy GK Economy Set 1