Measurement of Development & HDI MCQ — 50 Practice Questions with Answers

Explanation

In the GDP expenditure formula, G stands for Government Expenditure (government final consumption expenditure). C = Private Consumption, I = Gross Investment, (X – M) = Net Exports.

Explanation

The Lorenz Curve graphically represents income or wealth distribution. The further the Lorenz Curve is from the line of perfect equality (45-degree line), the greater the inequality. The Gini Coefficient is calculated as the area between the Lorenz Curve and the line of equality.

Explanation

The Tendulkar Committee (2009) revised the poverty estimation methodology. It recommended using a uniform Mixed Reference Period (MRP) consumption expenditure and set the poverty line at ₹32/day (urban) and ₹26/day (rural) at 2011-12 prices.

Explanation

PPP adjusts for differences in price levels across countries, enabling more meaningful comparison of GDP and living standards. In PPP terms, India is the 3rd largest economy in the world. In nominal terms, India surpassed Japan in 2026 to become the 4th largest economy.

Explanation

The new GDP series adopts double deflation methodology, separately deflating output and input for real GVA.