Income as an Indicator of Development

Q.

What are the limitations of average income and per capita income

Q.

What is average income? Also write down the formula to calculate the average income of the country

Q.

What is the difference between World Bank and Undp for measuring development

Q. In the World Development Reports, the World Bank classifies countries based on .

1. health
2. literacy rate
3. total income
4. per capita income

Q. Based on the World Bank's classification of countries according to per capita income, in which category will India fall with per capita income of $4, 046?

1. Lower-middle-income countries
2. Low-income countries
3. Higher-middle-income countries
4. High-income countries

Q. Per capita income of all the countries is calculated in which of the following currencies?

1. Pounds
2. US dollars
3. Euros
4. Rupees

Q.

Identify the social and economic groups which are most vulnerable to poverty in India.

Q. The per capita income of India is more than that of Nepal. In India, the richest 10% of people own 80.7% of the wealth. In Nepal, 57% of the people own 66% of the wealth.

Is India more developed than Nepal? Justify.

1. No, more wealth in Nepal led to more development.
2. No, there is inequal distribution of wealth in India.
3. Yes, India's per capita income is more than that of Nepal.
4. Yes, the rich contribute more to the economy than the poor.

Q. Which of the following is the most important component for comparing the development of countries?

1. Population
2. Per capita income
3. Income
4. Resources

Q. Per capita income is also known as .

1. addtional income
2. total income
3. marginal income
4. average income

Q. Calculate the per capita income from the following information:
Income of A = ₹5, 500
Income of B = ₹6, 500
Income of C = ₹0

1. ₹6, 000
2. ₹2, 000
3. ₹4, 000
4. ₹3, 000

Q. Assertion (A): Per capita income is a better indicator than total income to compare the development of nations.

Reasoning (R): Per capita income addresses how income is distributed among people.

1. Both A and R are true, and R is the correct explanation of A.
2. Both A and R are true, but R is not the correct explanation of A.
3. A is true, but R is false.
4. A is false, but R is true.

Q. Calculate the total income of India using the following information:
Per capita income: $2, 064
Total population: 136.64 crores

1. $2, 82, 024.96
2. $2, 82, 024.96 crores
3. $15.10
4. $15.10 crores

Q. Which of the following countries is the most developed?

Country's name	Monthly income of citizens in rupees	Average income
I	II	III
A	1, 500	1, 600	1, 700	1, 600
B	400	1, 500	2, 900	1, 600
C	300	1, 000	2, 000	1, 100

1. Country C
2. Country B
3. Country A
4. Countries A and B

Q. Assume that Nepal's per capita income is USD 1, 035.
Based on the World Bank's classification of countries according to per capita income, in which category does Nepal fall?

1. Low-income countries
2. Lower-middle-income countries
3. Higher-middle-income countries
4. High-income countries

Q. In how many categories does the World Bank classify countries based on the per capita income?

1. 6
2. 5
3. 4
4. 3

Q. Assertion (A): Per capita income is a better indicator than total income to compare the development of nations.

Reasoning (R): Per capita income addresses how income is distributed among people.

Q. Assume that the per capita income of Brazil is USD 12, 546.
Based on the World Bank's classification of countries on the basis of per capita income, in which category does Brazil fall?

1. Low-income countries
2. Lower-middle-income countries
3. High-income countries
4. Higher-middle-income countries

Q. Pair the range of per capita income with its category name as per the classification by the World Bank.

1. > $12, 536
2. $1, 036–4, 045
3. $4, 046–12, 535
4. < $1, 035

Q. Suppose there are four citizens in a country. The per capita income of the country is 1000 USD. The annual income of the first, second, and third citizens are 800 USD, 1200 USD, and 900 USD, respectively. Find out the annual income of the fourth citizen of the country.

[0.8 marks]

1. 900 USD
2. 1000 USD
3. 1050 USD
4. 1100 USD