MaargX UPSC by SAARTHI IAS

RPSC Economy — Ch2: Measurement of Development : HDI and Related Indices (100 MCQs with Answers & Explanations)
Chapter 2 · 100 Questions · Answers & Explanations

Master Measurement of Development for the RPSC exam

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100
MCQs
Ch 2
RPSC Economy Vol-5
4
Options each
100%
With explanations
Score 0 / 0
1
Measurement of Development : HDI and Related Indices

Which of the following is considered a primary limitation of Gross Domestic Product as a measure of a country’s development?

Explanation

National economic accounts measure the total value of market transactions within a country but ignore how wealth is distributed among citizens. A rising national income might benefit only a small elite while the majority remains impoverished. Consequently, this metric fails to indicate if growth is inclusive or equitable across different social segments, limiting its utility for development.

2
Measurement of Development : HDI and Related Indices

Which of the following economic activities is included in the calculation of Gross Domestic Product, despite often being a negative indicator of sustainable development?

Explanation

Standard accounting practices include spending on mitigating ecological damage because such activities involve market-based financial transactions. While these expenditures increase the total value of goods and services produced, they represent a response to negative events rather than actual progress. This highlights why aggregate figures can sometimes mislead when assessing overall societal health and long-term environmental sustainability in development.

3
Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: Gross Domestic Product per capita is a reliable indicator of the average standard of living for all citizens in a country. Statement II: Gross Domestic Product calculations do not capture the depletion of natural resources. Which of the following is correct?

Explanation

correct National income per capita represents a simple mathematical average and does not account for internal wealth disparities, making it an unreliable indicator of individual living standards. However, standard economic calculations do accurately omit the environmental costs of resource extraction. This lack of accounting for natural resource depletion is a major criticism of using aggregate production as a development measure.

4
Measurement of Development : HDI and Related Indices

Consider the following statements regarding the limitations of Gross Domestic Product as a measure of development: I. It does not account for the distribution of income among the population. II. It accurately evaluates the depreciation of environmental capital. III. It excludes the value of unpaid domestic work. Which of the above statement(s) is/are correct?

Explanation

National accounting often overlooks the uneven distribution of wealth and the depletion of natural resources. Additionally, it fails to include the value of non-market activities such as unpaid household chores and caregiving. These exclusions mean that a high aggregate figure does not necessarily correlate with sustainable environmental practices or the actual well-being of the entire population across a nation.

5
Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (Economic Concept) A. Real GDP B. GDP per capita C. Green GDP D. Nominal GDP List II: (Characteristic/Limitation) i. Deducts the cost of environmental damage ii. Does not account for inflation iii. Masks extreme income inequalities iv. Adjusted for general price level changes Options:

Explanation

various specialized metrics. Nominal figures use current prices, while real figures adjust for inflation over time. Per capita averages often mask significant internal inequalities within a population. Additionally, green accounting attempts to provide a more sustainable view by subtracting the economic costs of environmental degradation and resource depletion from the total national output.

6
Measurement of Development : HDI and Related Indices

Which distinguished economist is primarily credited with the creation of the Human Development Index?

Explanation

The Pakistani economist Mahbub ul Haq is credited with pioneering this metric to shift policy focus from purely economic growth to human well-being. He aimed to create a simple composite measure that could challenge the dominance of income-based assessments. His work emphasized that the ultimate objective of development is to enlarge people’s choices, capabilities, and life opportunities globally.

7
Measurement of Development : HDI and Related Indices

Which of the following statements incorrectly describes the conceptual origin of the Human Development Index?

Explanation

This index was originally established to move beyond national income figures by focusing on people and their capabilities. It was first introduced in 1990 within a report published by the United Nations Development Programme, influenced by Amartya Sen’s capability approach. It is not a product of the World Bank, as it serves as an alternative to their frameworks.

8
Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: The United Nations Development Programme has published the Human Development Report annually since 1990. Statement II: The Human Development Index aims to capture long-term progress in three basic dimensions of human development. Which of the following is correct?

Explanation

Since its inception in 1990, the United Nations Development Programme has released annual reports assessing global progress. The primary composite index used in these reports evaluates three essential dimensions of human life: health, education, and living standards. These dimensions provide a more comprehensive view of long-term national development than purely economic indicators, reflecting a broader perspective on societal wellbeing.

9
Measurement of Development : HDI and Related Indices

Consider the following statements regarding the origin and concept of the Human Development Index: I. It was developed by the Pakistani economist Mahbub ul Haq. II. Amartya Sen contributed significantly to the conceptual framework of the index. III. The first Human Development Report was published by the International Monetary Fund. IV. It was created to demonstrate that economic growth does not automatically translate to human development. Which of the above statements are correct?

Explanation

This composite metric was created by Mahbub ul Haq to show that economic expansion does not always improve human lives. Amartya Sen provided the essential theoretical framework based on human capabilities. Although widely used, it was launched by the United Nations Development Programme rather than the International Monetary Fund. It remains a vital tool for assessing global progress and social health.

10
Measurement of Development : HDI and Related Indices

Which of the following represents the correct chronological sequence in which these development metrics were first introduced globally?

Explanation

National income accounting emerged first in the mid-twentieth century as a primary economic tool. The social indicator movement then led to the creation of the Physical Quality of Life Index in the 1970s. This was followed by the broader human-centric metric in 1990. Finally, the multidimensional approach to measuring poverty was introduced globally in 2010 to replace methods.

11
Measurement of Development : HDI and Related Indices

What are the three foundational dimensions of the Human Development Index?

Explanation

The framework for assessing human progress centers on three fundamental areas of life. These include the ability to lead a long and healthy existence, the opportunity to acquire knowledge through schooling, and the attainment of a decent standard of living. By combining these factors, the index provides a more comprehensive view of development than purely financial or infrastructure-based national metrics.

12
Measurement of Development : HDI and Related Indices

Which of the following is NOT an indicator used to measure the dimensions of the Human Development Index?

Explanation

To calculate human development, specific indicators are used for health, education, and wealth. Life expectancy represents the health dimension, while schooling years measure knowledge. National income per capita reflects the standard of living. Although infant mortality is a significant health concern, it is not a direct component in the primary calculation, as life expectancy already captures general survival trends.

13
Measurement of Development : HDI and Related Indices

Why is the income dimension in the Human Development Index transformed using a logarithm?

Explanation

A logarithmic transformation is applied to national income data to reflect the principle that an extra dollar adds less to human development as wealth increases. This mathematical adjustment prevents very high incomes from disproportionately inflating the overall index score. It ensures that the measure better represents the actual impact of economic resources on expanding human capabilities and general life quality.

14
Measurement of Development : HDI and Related Indices

Consider the following statements regarding the dimensions and calculation of the Human Development Index: I. The health dimension is assessed entirely by life expectancy at birth. II. The education dimension incorporates mean years of schooling for adults aged 25 and older. III. The education dimension incorporates expected years of schooling for children of school-entering age. IV. The standard of living dimension is measured by Gross Domestic Product per capita. V. The overall index is calculated as the geometric mean of its three dimensional indices. Which of the above combinations of statements is incorrect?

Explanation

The composite index for human development assesses health via life expectancy and education through both mean and expected schooling years. However, it utilizes Gross National Income per capita rather than Gross Domestic Product to reflect the actual income available to residents. The final score is derived by calculating the geometric mean of these three dimensions to minimize the effects of substitution.

15
Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (HDI Dimension) A. Long and healthy life B. Knowledge (Adults) C. Knowledge (Children) D. Decent standard of living List II: (Indicator Used) i. Mean years of schooling ii. Gross National Income per capita iii. Expected years of schooling iv. Life expectancy at birth Options:

Explanation

primary human development metric is measured by specific indicators. Health is assessed using life expectancy at birth, while the educational component looks at both mean years for adults and expected years for children. Finally, the standard of living is evaluated through national income per capita adjusted for purchasing power, providing a comprehensive view of overall societal progress.

16
Measurement of Development : HDI and Related Indices

In the computation of the Education Index for the HDI, what are the maximum goalpost values assigned to expected years of schooling and mean years of schooling, respectively?

Explanation

In the calculation of the knowledge dimension, specific upper limits are set for normalization purposes. The maximum value for the expected time a child spends in school is established at eighteen years. For adults, the maximum value for the average time spent in education is fifteen years. These goalposts allow for the consistent scaling of indicators across different countries and periods.

17
Measurement of Development : HDI and Related Indices

Which of the following statements about the components of the HDI is incorrect?

Explanation

The composite measure for human development is calculated using indicators for health, knowledge, and income, all of which are normalized through specific goalposts. The final index value always falls between zero and one, with higher values indicating greater progress. It uses national income in purchasing power parity terms and sets a minimum life expectancy baseline to ensure accurate comparative analysis.

18
Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: The HDI utilizes Gross National Income rather than Gross Domestic Product to reflect the income retained by residents of a country. Statement II: Remittances received from abroad are excluded from Gross National Income calculations. Which of the following is correct?

Explanation

The index utilizes national income rather than domestic product because it better reflects the economic resources actually retained by a country’s residents. This calculation includes funds sent from citizens working abroad, which are vital for living standards in many nations. Unlike domestic product, which only counts local production, national income captures these international transfers, providing a more accurate resource measure.

19
Measurement of Development : HDI and Related Indices

Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): The final Human Development Index is computed using the geometric mean of the three dimensional indices rather than the arithmetic mean. Reason (R): The geometric mean reduces the level of substitutability between dimensions, ensuring that poor performance in one dimension is not fully compensated by good performance in another.

Explanation

Using the geometric mean for calculating the final composite score ensures that a country must perform well across all dimensions. Unlike an arithmetic average, this method penalizes uneven progress, meaning a very high income cannot fully compensate for poor health or education outcomes. This approach encourages balanced development and more accurately reflects the multi-faceted nature of human well- being and capability.

20
Measurement of Development : HDI and Related Indices

Which statistical technique is applied to normalize the values of the components (Life Expectancy, Education, Income) to a scale between 0 and 1 before calculating the final HDI?

Explanation

combine diverse indicators like years of schooling and currency values into a single index, they must be converted to a uniform scale. This is achieved by comparing each actual value against predefined minimum and maximum goalposts. This technique ensures that every component is expressed as a decimal between zero and one, allowing them to be mathematically aggregated into the final score.

21
Measurement of Development : HDI and Related Indices

In which Human Development category does India currently fall according to standard international classifications?

Explanation

Global reports classify nations into four distinct tiers based on their specific composite scores. Based on recent data regarding life expectancy, education, and income, India is currently positioned within the middle tier. This classification indicates significant progress over previous decades while also highlighting the substantial room for improvement required to reach the high or very high development status in the future.

22
Measurement of Development : HDI and Related Indices

Which of the following trends is NOT historically accurate regarding India’s HDI performance over the last three decades?

Explanation

the past thirty years, India has seen a steady rise in its overall development score. This progress is characterized by notable improvements in life expectancy at birth and significant growth in national income per capita. Contrary to stagnation, the average duration of education for the adult population has also increased consistently, contributing to the country’s upward movement in global rankings.

23
Measurement of Development : HDI and Related Indices

Among India’s immediate neighbors, which country has consistently placed in a higher HDI category than India in recent years?

Explanation

Within the South Asian region, comparative development assessments show varying levels of progress among neighbors. While several nearby nations share similar challenges and developmental tiers, Sri Lanka has historically maintained higher indicators in health and education. Consequently, it has consistently achieved a higher composite index value and a superior development category ranking compared to India and most other countries in the immediate vicinity.

24
Measurement of Development : HDI and Related Indices

Consider the following statements regarding India’s HDI ranking and trends: I. India belongs to the High Human Development category. II. Despite improvements, India’s HDI score temporarily declined during the COVID-19 pandemic years. III. Life expectancy at birth in India is currently above 65 years. Which of the above statement(s) is/are correct?

Explanation

India is currently classified within the medium development tier, not the high tier. Recent data shows that life expectancy in the country has surpassed the sixty-five-year mark. However, like many nations, India experienced a temporary setback in its overall development score and ranking during the global pandemic years, reflecting the significant health and economic challenges faced during that specific period.

25
Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (Country) A. Norway B. India C. Sri Lanka D. Niger List II: (General HDI Performance Tier) i. Low human development ii. Very high human development iii. Medium human development iv. High human development Options:

Explanation

different development tiers based on their composite index scores. Norway consistently ranks in the top tier, while nations like Sri Lanka are situated in the high development group. India currently falls into the medium category, reflecting its ongoing progress. Meanwhile, countries like Niger are classified in the low development tier due to significant challenges in health and education.

26
Measurement of Development : HDI and Related Indices

The Gender Development Index measures gender gaps in human development achievements by:

Explanation

This index evaluates the disparity between genders by comparing their respective human development achievements. It is determined by dividing the score calculated specifically for women by the score calculated for men. A value closer to one indicates less disparity, providing a clear measure of how close a country is to achieving equality in health, education, and standard of living dimensions.

27
Measurement of Development : HDI and Related Indices

In which year was the Gender Development Index first introduced by the United Nations Development Programme?

Explanation

The United Nations Development Programme introduced a specific measure to assess gender- based differences in human progress during the mid-1990s. This metric was launched alongside another gender-focused index to highlight that development is often not neutral between sexes. It aimed to bring global attention to the need for policies that specifically address the gaps in health, knowledge, and economic resources for women.

28
Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: The Gender Development Index utilizes the exact same three basic dimensions as the standard Human Development Index. Statement II: The Gender Development Index estimates the estimated earned income for women and men separately to measure the standard of living dimension. Which of the following is correct?

Explanation

To measure gender-based development gaps, the index uses the same core dimensions of health, education, and standard of living as the standard measure. It calculates separate scores for men and women by using sex-disaggregated data. For the economic dimension, it estimates earned income for each group separately, allowing for a direct comparison of the resources available to women and men.

29
Measurement of Development : HDI and Related Indices

Consider the following statements regarding the Gender Development Index: I. A Gender Development Index value of 1.000 indicates absolute gender parity. II. It directly assesses female political representation in the national parliament. III. It groups countries into five groups based on the absolute deviation from gender parity. IV. It uses sex-disaggregated data for life expectancy, expected years of schooling, and mean years of schooling. Which of the above statements are correct?

Explanation

This metric uses sex-disaggregated data for health and education to compare achievements between men and women. A score of one signifies absolute parity between the genders. Countries are categorized into five distinct groups based on how much they deviate from this parity. It focuses on these basic development dimensions rather than directly measuring political representation in national parliaments or governments.

30
Measurement of Development : HDI and Related Indices

Arrange the following indices in the correct chronological sequence of their first publication by the United Nations Development Programme: I. Human Poverty Index II. Multidimensional Poverty Index III. Human Development Index IV. Gender Development Index Choose the correct order from the options below:

Explanation

The evolution of development metrics began with the primary index in 1990. This was followed by the introduction of gender-specific measures in 1995. Later, a focus on human poverty was established in 1997. Finally, the more comprehensive multidimensional approach to poverty, which identifies overlapping deprivations at the household level, was launched in 2010, marking the most recent shift in international assessment.

31
Measurement of Development : HDI and Related Indices

What are the three dimensions measured by the Gender Inequality Index?

Explanation

Gender-based disparities are evaluated through three specific lenses. Reproductive health is assessed via maternal mortality and adolescent birth rates, while empowerment is measured by parliamentary representation and educational attainment. Finally, labor market participation reflects economic engagement. This multidimensional approach highlights the lost potential in human development resulting from the inequalities existing between women and men in a modern society.

32
Measurement of Development : HDI and Related Indices

Which of the following is NOT an indicator used in the computation of the Gender Inequality Index?

Explanation

To measure gender-based inequality, the index looks at reproductive health, empowerment, and economic activity. Specific indicators include maternal mortality, adolescent birth rates, parliamentary seat shares, and education levels. While health is a core dimension, this specific index focuses on reproductive health outcomes rather than general life expectancy, which is already captured in other development metrics used by the international community.

33
Measurement of Development : HDI and Related Indices

In the Gender Inequality Index, a value of 0 indicates:

Explanation

The scale for measuring gender inequality is designed such that the lowest possible score represents the ideal state. In this framework, a value of zero signifies that there is no disparity between men and women across the dimensions of health, empowerment, and labor market participation. Conversely, a value of one would represent the highest possible level of inequality between the sexes.

34
Measurement of Development : HDI and Related Indices

Consider the following statements regarding the Gender Inequality Index: I. It highlights the loss in potential human development due to disparity between female and male achievements. II. Empowerment is measured by the proportion of parliamentary seats occupied by females. III. Empowerment is also measured by the proportion of adult females and males aged 25 years and older with at least some secondary education. IV. The labor market dimension is measured by the wage gap between men and women. V. It was introduced in 2010 to replace older gender inequality measures. Which of the above combinations of statements is incorrect?

Explanation

This index measures the loss in development due to gender disparities in health, empowerment, and economic activity. Empowerment includes both parliamentary representation and secondary education levels. However, the economic dimension is assessed through labor force participation rates rather than the specific wage gap. This tool was introduced in 2010 to provide a more sophisticated understanding of how gender inequality hinders progress.

35
Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (Index) A. Human Development Index B. Gender Inequality Index C. Multidimensional Poverty Index D. Gender Development Index List II: (Specific Indicator Used) i. Adolescent birth rate ii. Ratio of female to male HDI iii. Gross National Income per capita iv. Cooking fuel deprivation Options:

Explanation

indicators to assess different aspects of development. The standard human development measure utilizes national income per capita, while the gender inequality metric includes adolescent birth rates. Poverty is assessed multidimensionally by looking at household deprivations like cooking fuel. Additionally, the gender development index compares the relative achievements of women and men by taking the ratio of their scores.

36
Measurement of Development : HDI and Related Indices

The global Multidimensional Poverty Index was developed by the United Nations Development Programme in collaboration with which institution?

Explanation

The global measure for multidimensional poverty was created through a partnership between the United Nations Development Programme and a specialized research center at Oxford University. This collaboration aimed to develop a more nuanced way of identifying poverty that goes beyond simple income levels. The resulting index captures the various simultaneous deprivations individuals face in health, education, and living standards.

37
Measurement of Development : HDI and Related Indices

In which year was the global Multidimensional Poverty Index launched to replace the Human Poverty Index?

Explanation

A more comprehensive way to measure global poverty was launched in 2010 to replace the older human poverty index. This newer metric identifies overlapping deprivations at the household level across the same dimensions as the standard development index. Since its introduction, it has become a primary tool for international organizations to understand the complex nature of poverty in various countries.

38
Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: The Multidimensional Poverty Index captures acute overlapping deprivations that people face at the same time. Statement II: The Multidimensional Poverty Index relies strictly on income levels to determine poverty cut-offs. Which of the following is correct?

Explanation

The multidimensional poverty index is designed to identify the various overlapping deprivations that people experience at the same time. Unlike traditional measures, it does not rely on income levels to determine who is poor. Instead, it looks at specific gaps in health, education, and living standards. This approach provides a clearer picture of the actual hardships faced by individuals and households.

39
Measurement of Development : HDI and Related Indices

Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): The Multidimensional Poverty Index is calculated using the Alkire-Foster method which employs a dual-cutoff approach. Reason (R): The method requires individuals to first be deprived in specific indicators, and then collectively be deprived in at least one-third of the weighted indicators to be considered multidimensionally poor.

Explanation

This poverty measurement technique identifies the poor by looking at multiple deprivations simultaneously. An individual must first be deprived in specific indicators, and then the total weight of these deprivations must reach a certain threshold, typically one-third. This dual- cutoff method ensures that the index identifies those experiencing acute poverty across several dimensions of life, rather than just one.

40
Measurement of Development : HDI and Related Indices

Under the global Multidimensional Poverty Index framework, an individual is classified as living in “severe multidimensional poverty” if their deprivation score is at least:

Explanation

Individuals are categorized based on the intensity of the deprivations they experience. While a person is considered multidimensionally poor if their deprivation score is at least one-third, they are classified as living in severe poverty if that score reaches or exceeds one-half. This distinction helps policymakers prioritize interventions for those facing the most extreme and overlapping hardships in their daily lives.

41
Measurement of Development : HDI and Related Indices

Which of the following correctly identifies the two indicators used to assess the health dimension in the global Multidimensional Poverty Index?

Explanation

To assess the health dimension of poverty, two specific indicators are evaluated at the household level. Nutrition is measured by looking at whether any adult or child is undernourished. Child mortality is assessed based on whether any child has died in the family within a specific timeframe. These indicators provide insight into the basic health and survival challenges faced by poor households.

42
Measurement of Development : HDI and Related Indices

Which of the following is NOT an indicator used to assess the standard of living dimension in the global Multidimensional Poverty Index?

Explanation

The standard of living dimension in poverty assessments is measured through six specific indicators. These include access to cooking fuel, adequate sanitation, safe drinking water, electricity, and decent housing, as well as the ownership of basic assets. While modern connectivity is important, internet access is not currently one of the standard indicators used to calculate this specific global multidimensional poverty score.

43
Measurement of Development : HDI and Related Indices

Which of the following statements incorrectly describes the weighting system of the global Multidimensional Poverty Index?

Explanation

poverty index is structured with three equally weighted dimensions. Health and education each contain two indicators, which are weighted at one-sixth each. The standard of living dimension consists of six indicators. Because the total weight for this dimension is one-third, each of the six individual indicators is assigned a weight of one- eighteenth, ensuring they collectively contribute equally to the final score.

44
Measurement of Development : HDI and Related Indices

Consider the following statements about the deprivation cutoffs in the global Multidimensional Poverty Index: I. A household is deprived in nutrition if any adult or child is found to be undernourished. II. A household is deprived in child mortality if any child has died in the family in the five years preceding the survey. III. A household is deprived in sanitation if the sanitation facility is shared with other households. Which of the above statement(s) is/are correct?

Explanation

Households are identified as deprived based on specific criteria across various indicators. A lack of adequate nutrition for any member or the tragic loss of a child indicates a health deprivation. Additionally, living standards are considered poor if sanitation facilities are inadequate or shared with other families. These detailed cutoffs allow for a precise identification of the multifaceted hardships faced by individuals.

45
Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (MPI Dimension) A. Health B. Education C. Standard of Living D. Individual Indicator in Standard of Living List II: (Total Weight in the Index) i. 1/3 ii. 1/3 iii. 1/3 iv. 1/18 Options:

Explanation

is divided into three dimensions, each carrying one-third of the total weight. Health and education dimensions each have two indicators, while the standard of living dimension contains six. Consequently, each individual indicator within the standard of living dimension, such as electricity or housing, is assigned a weight of one-eighteenth to maintain the overall dimensional balance.

46
Measurement of Development : HDI and Related Indices

Under the National Multidimensional Poverty Index framework for India, improvements in which specific areas have been the primary drivers for lifting millions of people out of poverty in recent years?

Explanation

Recent data from India shows that millions have escaped multidimensional poverty due to significant improvements in several key areas. Enhanced nutritional programs, better access to education, the expansion of sanitation facilities, and the widespread provision of clean cooking fuel have been the primary drivers of this progress. These targeted interventions have directly addressed the core deprivations that previously kept many households in poverty.

47
Measurement of Development : HDI and Related Indices

The primary data source utilized by NITI Aayog to compute the baseline National Multidimensional Poverty Index is the:

Explanation

To calculate the national poverty index, the Indian government relies on a comprehensive survey that provides detailed data on health, education, and living standards. This survey is the primary source because it captures the necessary information at the household level across the entire country. It allows for a precise assessment of multiple deprivations and helps track progress in reducing poverty over time.

48
Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: India’s National Multidimensional Poverty Index developed by NITI Aayog includes the exact same 10 indicators as the global MPI without any additions. Statement II: NITI Aayog added “Maternal Health” and “Bank Account” to the National MPI framework to align it with national priorities. Which of the following is correct?

Explanation

India’s national framework for measuring multidimensional poverty is based on the global model but has been customized to reflect local priorities. It includes the original ten indicators but adds two more: maternal health and possession of a bank account. This expanded list provides a more relevant assessment of poverty in the Indian context, ensuring that national policies are effectively targeted toward specific needs.

49
Measurement of Development : HDI and Related Indices

Consider the following statements regarding India’s progress in multidimensional poverty: I. Rural areas have recorded a faster decline in poverty headcount ratio than urban areas. II. Uttar Pradesh, Bihar, and Madhya Pradesh registered the largest absolute decline in the number of multidimensionally poor. III. The incidence of poverty across India has dropped to a single-digit percentage according to recent national reports. IV. Rajasthan was among the top ten states that recorded a significant decline in the proportion of multidimensionally poor. Which of the above statements are correct?

Explanation

India has seen a faster decline in poverty within rural regions compared to urban centers. States like Bihar, Uttar Pradesh, and Madhya Pradesh have witnessed the largest absolute reduction in the number of people living in poverty. While significant progress has been made, the national headcount ratio remains in double digits according to the most recent comprehensive baseline reports on multidimensional poverty.

50
Measurement of Development : HDI and Related Indices

Arrange the following states in descending order of their multidimensional poverty headcount ratio as per the initial baseline National MPI report: I. Uttar Pradesh II. Bihar III. Kerala IV. Jharkhand Choose the correct order from the options below:

Explanation

Regional reports indicate that Bihar has the highest percentage of population facing multiple deprivations, followed by Jharkhand and Uttar Pradesh. In contrast, Kerala maintains the lowest headcount ratio due to superior social indicators. Ranking states by their poverty levels helps policymakers identify which regions require the most urgent interventions and resources to improve living standards and reduce disparities across the nation.

51
Measurement of Development : HDI and Related Indices

The Global Hunger Index measures hunger on a 100-point scale where a score of zero represents:

Explanation

This metric utilizes a scale where the lowest possible numerical value represents the ideal scenario of zero nutritional deprivation. In this context, a score of zero implies that the population has adequate food intake and that child health indicators are optimal. Such a score signifies that no part of the population suffers from undernourishment, stunting, wasting, or premature child mortality in a country.

52
Measurement of Development : HDI and Related Indices

Which of the following is NOT one of the four component indicators of the Global Hunger Index?

Explanation

To assess hunger, four specific components are measured: undernourishment in the general population, and three indicators focused on children under five. These child-focused measures are stunting, wasting, and mortality. While maternal health is vital for child outcomes, maternal undernutrition is not one of the four direct indicators used to calculate the composite hunger score in this specific annual global report.

53
Measurement of Development : HDI and Related Indices

The Global Hunger Index report is co-published annually by which two organizations?

Explanation

The annual report on global hunger is produced through a joint effort by two prominent non- governmental organizations based in Ireland and Germany. This partnership ensures that hunger is tracked across various nations using a standardized methodology. Their work aims to raise awareness and provide data-driven insights to help the international community achieve the goal of zero hunger by identifying the most affected regions.

54
Measurement of Development : HDI and Related Indices

Consider the following statements regarding the Global Hunger Index: I. It is calculated primarily using data from the Food and Agriculture Organization and UNICEF. II. Child stunting refers to children who have low weight for their height. III. Child wasting refers to children who have low height for their age. IV. Undernourishment measures the share of the population with insufficient caloric intake. V. India has consistently ranked in the top 20 countries with the lowest hunger levels. Which of the above combinations of statements is incorrect?

Explanation

Hunger is measured using data on food supply and child health. Stunting refers specifically to low height for age, reflecting chronic undernutrition, while wasting denotes low weight for height, indicating acute nutritional stress. India has historically faced challenges in these areas and has not been ranked among the top twenty countries with the lowest hunger levels in recent international reports and assessments.

55
Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (GHI Indicator) A. Undernourishment B. Child stunting C. Child wasting D. Child mortality List II: (Underlying Condition Measured) i. Acute undernutrition (low weight for height) ii. Chronic undernutrition (low height for age) iii. Inadequate food supply for the general population iv. Unhealthy environment and inadequate nutrition causing fatal outcomes Options:

Explanation

hunger index measure specific nutritional problems. Undernourishment reflects general food shortages. Among children, stunting indicates long-term or chronic nutritional deficiencies, while wasting shows immediate or acute distress. Child mortality is an indicator of the fatal consequences of poor nutrition combined with an unhealthy environment. Together, these measures provide a comprehensive view of the severity of hunger.

56
Measurement of Development : HDI and Related Indices

The Human Poverty Index was initially introduced by the United Nations Development Programme in the Human Development Report of which year?

Explanation

During the late 1990s, a new measure was introduced to focus specifically on the deprivations people face rather than their average achievements. This metric was intended to complement existing human development assessments by highlighting the proportion of the population excluded from progress. It marked a significant step toward understanding the depth and distribution of poverty within both developing and high-income nations.

57
Measurement of Development : HDI and Related Indices

Which of the following appropriately distinguishes HPI-1 and HPI-2 developed by the UNDP?

Explanation

poverty metric was designed in two versions to account for different economic contexts. The first version was tailored for developing countries, focusing on basic survival and literacy. The second version was created for high- income nations, adding a dimension for social exclusion, such as long-term unemployment. This distinction allowed for a more meaningful assessment of poverty relative to a country’s level of economic development.

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Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: The Human Poverty Index measured deprivations in the same three dimensions as the Human Development Index. Statement II: The Human Poverty Index was ultimately discontinued and replaced by the Multidimensional Poverty Index. Which of the following is correct?

Explanation

The older poverty metric focused on the same core dimensions of health, education, and standard of living as the standard human development index. It measured the lack of progress in these areas rather than average gains. Eventually, it was discontinued and replaced by a more sophisticated household-level measure that could identify the specific individuals suffering from multiple overlapping deprivations simultaneously.

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Measurement of Development : HDI and Related Indices

Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): The Human Poverty Index was largely replaced by the Multidimensional Poverty Index globally. Reason (R): The Human Poverty Index used macro-level averages and could not identify which specific individuals or households were experiencing multiple overlapping deprivations.

Explanation

The transition to a newer poverty measure occurred because the older version relied on national-level averages. These averages could not show if the same individual was suffering from several different problems at once, such as being both uneducated and malnourished. The newer multidimensional approach solves this by using household data to identify exactly how many people face multiple simultaneous deprivations.

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Measurement of Development : HDI and Related Indices

Choose the correct chronological sequence representing the evolution of poverty measurement approaches adopted by the United Nations Development Programme:

Explanation

The evolution of measuring human progress began with a broad index in 1990. Seven years later, a specific measure focusing on deprivations was introduced to better understand the poor. Finally, in 2010, the international community shifted to a multidimensional approach that identifies overlapping hardships at the household level. This chronological progression reflects an increasing sophistication in how global development and poverty are understood.

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Measurement of Development : HDI and Related Indices

The Inequality-adjusted Human Development Index determines the level of human development when:

Explanation

modified index provides a more realistic view of human progress by adjusting the average achievements in health, education, and income for their distribution across the population. If resources are concentrated among a few, the index value drops significantly. It essentially shows the actual level of development that an average person experiences, taking into account the impact of internal social and economic inequalities.

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Measurement of Development : HDI and Related Indices

If the Inequality-adjusted Human Development Index of a country is exactly equal to its standard Human Development Index, it indicates that:

Explanation

When there is no loss in human development due to inequality, the adjusted index score will match the standard score exactly. This situation only occurs if health, education, and income are distributed perfectly across the entire population. In reality, most countries see a lower adjusted score, with the gap between the two measures representing the loss in potential development caused by internal disparities.

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Measurement of Development : HDI and Related Indices

Which mathematical inequality measure does the Inequality-adjusted Human Development Index primarily rely upon to discount the average values of the dimensions?

Explanation

To adjust the standard development index for inequality, a specific mathematical approach is used to discount each dimension’s average value. This method, based on a well-known welfare function, emphasizes the importance of a more equal distribution. It calculates the loss in development by comparing the geometric and arithmetic means of the distribution, providing a nuanced view of how inequality affects overall national progress.

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Measurement of Development : HDI and Related Indices

Consider the following statements regarding the Inequality-adjusted Human Development Index: I. The index aims to capture the loss in potential human development due to inequality. II. In countries with high inequality, the Inequality-adjusted Human Development Index value is substantially lower than the standard HDI value. III. It applies a uniform discount rate to all countries regardless of their internal distribution. Which of the above statement(s) is/are correct?

Explanation

The inequality-adjusted index is designed to show the potential human development lost due to uneven distribution. Consequently, in nations where inequality is high, the adjusted score is significantly lower than the standard average. This calculation is not based on a uniform discount rate; instead, it varies for each country depending on the actual internal distribution of health, education, and income across its citizens.

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Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (Specific UNDP Index) A. Standard HDI B. IHDI C. GDI D. MPI List II: (Core Concept/Adjustment Focus) i. Gender gaps in human development achievements ii. Overlapping deprivations at the household level iii. Loss in human development due to uneven distribution iv. Average achievements in basic human development dimensions Options:

Explanation

indices to capture various aspects of progress. The standard measure tracks average achievements, while another adjusts these scores for internal inequality. Gender-specific gaps are measured through a ratio of achievements between sexes. Finally, a multidimensional approach identifies specific, overlapping deprivations at the household level, offering a comprehensive understanding of the hardships faced by the most vulnerable populations.

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Measurement of Development : HDI and Related Indices

The Happy Planet Index measures human well- being and environmental impact using which of the following components?

Explanation

alternative metric assesses how efficiently nations use their natural resources to support the well-being of their citizens. It combines subjective reports of life satisfaction with objective data on how long people live. By dividing this product by the country’s environmental footprint, it identifies which societies are achieving high quality of life without overexploiting the planet’s finite ecological resources.

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Measurement of Development : HDI and Related Indices

Which of the following statements about the World Happiness Report is incorrect?

Explanation

The annual report on global happiness is based on extensive survey data and ranks nations by their average life evaluation scores. While it is widely cited by international bodies, it is produced by a specialized sustainable development network rather than the United Nations Development Programme. Finland has famously topped these rankings for several consecutive years, reflecting high levels of social trust and support.

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Measurement of Development : HDI and Related Indices

Which specific tool is used in the Gallup World Poll to assess the subjective life evaluation component in the World Happiness Report?

Explanation

In global surveys of subjective well-being, respondents are asked to imagine a staircase with ten steps, where the top represents their best possible life. They then indicate which step they currently feel they are standing on. This specific tool provides a clear numerical measure of life satisfaction that can be compared across different cultures and nations to assess overall societal happiness levels.

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Measurement of Development : HDI and Related Indices

Consider the following statements regarding the World Happiness Report: I. It explains variations in happiness using six key variables, including GDP per capita and social support. II. Healthy life expectancy and freedom to make life choices are among the core variables analyzed. III. Generosity and perceptions of corruption are excluded from the analysis to prevent bias. IV. India has historically ranked relatively low in the index, often trailing behind some of its neighbors. Which of the above statements are correct?

Explanation

Global happiness rankings are explained through variables like economic output, social support, and healthy life expectancy. Perceptions of corruption and personal freedom are also key factors included in the analysis. Historically, India has ranked lower than several neighboring nations in these assessments. This indicates that while the country’s economy is growing, other social and subjective factors impacting well- being face significant challenges.

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Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: The Happy Planet Index heavily penalizes countries with large ecological footprints, regardless of their high life expectancy. Statement II: The World Happiness Report focuses solely on subjective well-being and completely ignores objective economic indicators like GDP. Which of the following is correct?

Explanation

One index specifically penalizes countries that have high environmental costs, even if their citizens live long lives. This ensures that sustainability is a core part of the assessment. Meanwhile, the global happiness report does not ignore economic facts. It uses national income per capita as one of its primary variables to explain why some countries report higher levels of subjective well-being than others.

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Measurement of Development : HDI and Related Indices

The Physical Quality of Life Index was developed in the 1970s by which prominent scholar?

Explanation

During the 1970s, a prominent scholar developed a new metric to assess development by focusing on basic social outcomes rather than economic growth. He sought to create a tool that could measure the physical well-being of a population more directly. His work was part of a larger movement to find alternatives to national income as a primary measure of a country’s progress.

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Measurement of Development : HDI and Related Indices

Which of the following indicators is NOT a component of the Physical Quality of Life Index?

Explanation

This specific social index was designed to be independent of economic metrics. It consists of three components: the infant mortality rate, the percentage of the population that is literate, and life expectancy at the age of one. By excluding monetary figures, it aimed to provide a direct assessment of whether the basic human needs of the population were being successfully met.

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Measurement of Development : HDI and Related Indices

Why did the creator of the Physical Quality of Life Index intentionally exclude Gross National Product from its calculation?

Explanation

The creator of this social index intentionally omitted national income figures because he believed that economic expansion does not always improve the actual lives of people. He argued that total production can increase while health and literacy remain poor. Therefore, he focused on non-monetary indicators to provide a clearer picture of societal progress and the actual fulfillment of essential human requirements.

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Measurement of Development : HDI and Related Indices

Consider the following statements regarding the Physical Quality of Life Index: I. It was developed by Morris D. Morris in the 1970s. II. It is calculated by taking an unweighted average of its three components. III. It utilizes life expectancy at age one rather than life expectancy at birth. IV. The index components are scaled from 1 to 100, where 100 represents the best outcome. V. It has completely replaced the Human Development Index in modern economic assessments. Which of the above combinations of statements is incorrect?

Explanation

This social index, developed in the 1970s, uses an unweighted average of its three scaled components. It is unique for utilizing life expectancy at age one. While it was an important step in development thinking, it has not replaced modern metrics like the Human Development Index. Instead, it serves as a historical predecessor that paved the way for more comprehensive multidimensional assessments.

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Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (Scholar/Institution) A. Morris D. Morris B. Mahbub ul Haq C. OPHI and UNDP D. Concern Worldwide and Welthungerhilfe List II: (Associated Development Index) i. Human Development Index ii. Global Hunger Index iii. Physical Quality of Life Index iv. Multidimensional Poverty Index Options:

Explanation

are responsible for various development metrics. Morris D. Morris pioneered the physical quality of life index, while Mahbub ul Haq created the human development index. Collaborative efforts between Oxford and the UNDP led to the multidimensional poverty index. Finally, the global hunger index is published annually through a partnership of NGOs dedicated to monitoring nutritional well- being.

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Measurement of Development : HDI and Related Indices

The Ease of Doing Business Index, which measured regulations directly affecting businesses, was published by which international organization before its discontinuation?

Explanation

This influential index was published for nearly two decades to rank countries based on the regulatory environment for private firms. It aimed to show how easily businesses could operate and grow under national laws. However, the report was eventually discontinued after internal reviews found significant issues with data integrity. It remains a notable example of how international organizations track and promote economic reforms.

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Measurement of Development : HDI and Related Indices

The Ease of Doing Business Index aggregated scores across how many primary parameters or topics regulating the life cycle of a business?

Explanation

To evaluate the business environment, the index analyzed ten specific areas that cover the life cycle of a company. These parameters included processes like starting a firm, obtaining electricity, and paying taxes. By aggregating data across these diverse topics, the report provided a single score that allowed for the comparison of regulatory efficiency and business friendliness across different global economies.

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Measurement of Development : HDI and Related Indices

Which of the following was NOT one of the parameters measured in the Ease of Doing Business Index?

Explanation

The parameters used in this business-focused index were designed to measure the ease of administrative and legal processes for companies. While it covered things like enforcing contracts and dealing with construction permits, it did not include measures of environmental sustainability or compliance. The focus was strictly on the regulatory burden and the efficiency of government services related to the commercial life of a firm.

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Measurement of Development : HDI and Related Indices

Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): The publication of the Ease of Doing Business report was officially discontinued in 2021. Reason (R): Internal audits revealed data irregularities and ethical concerns regarding the manipulation of data for specific countries in previous reports.

Explanation

The decision to stop publishing this major business report in 2021 was driven by serious internal investigations. These audits uncovered that data had been manipulated in previous years to change the rankings of certain countries. This ethical crisis undermined the credibility of the index, leading the institution to discontinue it and begin developing a more transparent and reliable replacement framework.

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Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: India’s ranking in the Ease of Doing Business index deteriorated significantly between 2014 and 2019. Statement II: Reforms such as the introduction of the Insolvency and Bankruptcy Code played a crucial role in altering India’s business environment metrics. Which of the following is correct?

Explanation

India saw a dramatic improvement in its business environment rankings during the late twenty- teens. This rapid rise was fueled by significant legal and administrative reforms, such as the implementation of a new insolvency framework and a simplified tax system. These changes directly addressed several parameters measured by international organizations, making the country a much more attractive and efficient place for private investment.

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Measurement of Development : HDI and Related Indices

The Global Innovation Index is co-published annually by Cornell University, INSEAD, and which international organization?

Explanation

The annual assessment of global innovation is a collaborative effort between major academic institutions and a specialized international agency focused on intellectual property. This partnership ensures a comprehensive look at how different countries foster and implement new ideas. By combining expertise from various fields, the report provides detailed insights into the strengths and weaknesses of national innovation ecosystems.

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Measurement of Development : HDI and Related Indices

The Global Innovation Index calculates its overall score based on the average of which two primary sub-indices?

Explanation

A country’s innovation performance is determined by averaging two main scores. The first looks at the resources and environment available to support innovative activities, such as infrastructure and research funding. The second measures the actual results of these efforts, including patents, scientific publications, and new technology. This balanced approach shows how effectively a nation converts its investments into tangible innovative results.

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Measurement of Development : HDI and Related Indices

Which of the following statements about India’s performance in the Global Innovation Index over recent years is incorrect?

Explanation

to a decline, India has consistently moved up in international innovation rankings, recently breaking into the top forty countries globally. The nation is particularly strong in exporting services related to information and communication technology. This upward trend reflects a growing focus on research, development, and a strengthening innovation ecosystem, making India a recognized leader among countries with similar income levels.

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Measurement of Development : HDI and Related Indices

Consider the following statements regarding the Global Innovation Index: I. It utilizes both objective statistical data and subjective survey data to measure innovation. II. Institutions, human capital and research, and infrastructure are pillars of the Innovation Output Sub-Index. III. Knowledge and technology outputs are pillars of the Innovation Output Sub-Index. Which of the above statement(s) is/are correct?

Explanation

The innovation index uses a mix of hard statistical data and expert surveys to provide a complete picture. It organizes indicators into several pillars. While infrastructure and research are considered inputs, the actual creation of knowledge and technology is classified as an output. This distinction allows policymakers to see whether their country is succeeding in generating results from its various investments in human capital.

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Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (Global Index) A. Global Innovation Index B. World Happiness Report C. Ease of Doing Business Index D. Human Development Index List II: (Publishing Institution/Partner) i. United Nations Development Programme ii. World Intellectual Property Organization iii. World Bank Group iv. UN Sustainable Development Solutions Network Options:

Explanation

specialized indices to track global progress. The innovation index is a product of the World Intellectual Property Organization, while the World Bank formerly published business- related rankings. Happiness data is released by a specialized sustainable development network. Meanwhile, the United Nations Development Programme remains the primary source for comprehensive measures of human development and societal health.

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Measurement of Development : HDI and Related Indices

The Gini Coefficient is a widely used statistical measure to represent the:

Explanation

This statistical tool measures the degree of deviation of the actual distribution of resources from a perfectly equal distribution. It provides a numerical value to represent the concentration of income. A higher value signifies greater disparity within the population, allowing for comparisons across different countries or time periods to track social and economic equity and the impact of distributive national policies.

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Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: A Gini Coefficient of 0 represents perfect income equality within a population. Statement II: A Gini Coefficient of 1 indicates absolute income inequality, where a single individual holds all the income. Which of the following is correct?

Explanation

On the scale used to measure inequality, a value of zero represents the theoretical ideal where every person has the exact same amount of income. Conversely, a value of one indicates a situation where a single person holds all the income while everyone else has none. Most nations fall somewhere in between, with lower numbers representing more egalitarian societies and resources.

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Measurement of Development : HDI and Related Indices

Geometrically, the Gini Coefficient is calculated as the ratio of the area between the Lorenz curve and the line of perfect equality to the:

Explanation

To calculate the numerical measure of inequality, economists look at the space between the actual distribution curve and the line of perfect equality. This area is then divided by the total triangular area located below that diagonal line. This ratio provides a precise mathematical value that represents how far a society is from an even distribution of wealth or income.

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Measurement of Development : HDI and Related Indices

Consider the following statements regarding the Gini Coefficient: I. It can be used to measure both income inequality and wealth inequality. II. A decreasing Gini Coefficient indicates that income distribution is becoming more unequal. III. It satisfies the principle of anonymity, meaning it does not matter who the high and low earners are. IV. It is derived directly from the Lorenz curve. Which of the above statements are correct?

Explanation

Derived from a graphical distribution curve, this coefficient can measure disparities in both income and wealth. It follows the principle of anonymity, focusing on the overall distribution rather than specific individuals. Importantly, as the value of the coefficient decreases, it indicates that the distribution is becoming more equal over time, reflecting a reduction in the concentration of resources.

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Measurement of Development : HDI and Related Indices

Arrange the following hypothetical Gini Coefficient values of four nations in order from the most equal income distribution to the most unequal income distribution: I. 0.85 II. 0.25 III. 0.45 IV. 0.65 Choose the correct order from the options below:

Explanation

When comparing inequality values, lower numbers represent a more even distribution of resources. For example, a value of 0.25 indicates much higher equality than a value of 0.85. By arranging these figures from lowest to highest, we can see which societies have the most equitable distributions and which have the highest concentrations of income or wealth among a small group.

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Measurement of Development : HDI and Related Indices

In a Lorenz curve graph representing income distribution, the x-axis and y-axis respectively represent:

Explanation

To visualize inequality, a graph is created where one axis tracks the total percentage of the population, starting from the poorest members. The other axis shows the total percentage of income that those people collectively earn. This method allows for a clear comparison between a perfectly equal society and the actual distribution found in a real country or economy.

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Measurement of Development : HDI and Related Indices

In the graphical representation of the Lorenz curve, what does the 45-degree diagonal line represent?

Explanation

In graphical models of income distribution, the straight forty-five-degree line represents a theoretical situation where every individual or household receives an identical share of total national income. The distance between the actual curve and this diagonal line serves as a visual indicator of the level of inequality present within that specific society, illustrating the overall concentration of national wealth.

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Measurement of Development : HDI and Related Indices

Which of the following statements about the Lorenz curve is incorrect?

Explanation

graphical tool, developed in the early twentieth century, provides a visual representation of how wealth is shared. By definition, the curve must stay below or on the diagonal line because the poorest percentage of people cannot earn more than that same percentage of the total income. A curve that sags further away from this diagonal line indicates a higher level of inequality.

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Measurement of Development : HDI and Related Indices

Consider the following statements regarding the Lorenz Curve: I. It plots the cumulative percentage of the population against the cumulative percentage of income. II. A perfectly equal society would have a Lorenz curve that perfectly matches the 45-degree line. III. The area between the Lorenz curve and the line of perfect equality is used to compute the Gini coefficient. IV. If the Lorenz curve for Country A is closer to the diagonal than Country B’s, Country A has higher inequality. V. It only illustrates the distribution and does not provide absolute income values. Which of the above combinations of statements is incorrect?

Explanation

This graphical method plots population against income to illustrate distribution without showing absolute values. A curve that perfectly matches the diagonal represents absolute equality. If one country’s curve is closer to the diagonal than another’s, it means the first country has less inequality. This visual comparison is essential for calculating the numerical coefficient that summarizes the extent of resource concentration.

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Measurement of Development : HDI and Related Indices

Match the items in List I with those in List II: List I: (Inequality Concept) A. Gini Coefficient of 0 B. Gini Coefficient of 1 C. Lorenz Curve matching diagonal D. Lorenz Curve sagging deeply List II: (Interpretation) i. High income inequality ii. Absolute income inequality iii. Perfect equality distribution iv. Perfect income equality Options:

Explanation

degree of resource distribution in a society. A zero value on the inequality scale indicates perfect equality. In contrast, a value of one represents absolute inequality. Graphically, when the distribution matches the diagonal line, it shows an even spread. Conversely, a curve that sags deeply away from that line is a clear indicator of high income disparity.

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Measurement of Development : HDI and Related Indices

To measure holistic development and progress toward global goals at the sub-national level in India, NITI Aayog regularly publishes which of the following indices?

Explanation

To monitor progress toward international sustainability targets at the regional level, the central planning body in India publishes a comprehensive regular report. This index tracks the performance of all states and union territories across various social, economic, and environmental goals. It fosters a spirit of competitive federalism, encouraging local governments to improve their outcomes in health, education, and basic infrastructure.

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Measurement of Development : HDI and Related Indices

In the NITI Aayog SDG India Index classification, a state with a score between 65 and 99 is categorized as a:

Explanation

States are classified into four categories based on their performance in the national sustainability report. Those achieving a high score between sixty-five and ninety-nine are placed in the second-highest tier. This designation indicates that the state has made significant progress and is close to achieving the designated targets, serving as a model for others that are still in lower performance categories.

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Measurement of Development : HDI and Related Indices

Which of the following is NOT a designated performance category for states in the NITI Aayog SDG India Index?

Explanation

The national framework for monitoring development goals uses four specific categories to rank regional performance. These include aspirants for those with lower scores, performers for those in the middle, and front runners for high achievers. Those that have fully met the targets are called achievers. The term “laggard” is not used in the official classification system to describe the participating states.

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Measurement of Development : HDI and Related Indices

Given below are two statements, one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): India places significant emphasis on customized national indices like the National MPI and the SDG India Index rather than relying solely on global development reports. Reason (R): National averages in global reports often mask severe regional disparities across Indian states, and localized indices facilitate targeted sub-national policy interventions.

Explanation

India creates specialized national indices because global reports often fail to show the wide differences between various states. A national average can hide the fact that some regions are doing very well while others still face major challenges. By using localized data, the government can create more effective policies that target the specific needs of each region and reduce internal disparities.

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Measurement of Development : HDI and Related Indices

Read the following statements carefully: Statement I: India’s approach to measuring development incorporates both absolute metrics like GDP growth and multidimensional aspects like those found in the National MPI. Statement II: States in India utilize multidimensional parameters to guide budget allocations for poverty eradication schemes. Which of the following is correct?

Explanation

The national strategy for assessing progress involves a dual approach. It tracks traditional economic growth through aggregate figures while simultaneously using comprehensive metrics to identify social deprivations. By incorporating state-level data on health, education, and living standards, the government can better direct resources toward specific regions and sectors that require targeted support to achieve inclusive and sustainable national development.

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What does this RPSC Economy Chapter 2 MCQ set cover?

It covers 100 multiple-choice questions on Measurement of Development : HDI and Related Indices, a chapter of the RPSC Prelims Economy syllabus, each with the correct answer and a detailed explanation.

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RPSC Prelims Economy (Vol-5) — Chapter 2: Measurement of Development : HDI and Related Indices. 100 MCQ practice set with answers and explanations for RPSC Prelims preparation.

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