Q91. In a Lorenz curve graph representing income distribution, the x-axis and y-axis respectively represent:
Measurement of Development: HDI and Related Indices: RAS Prelims MCQs
100 RAS Prelims MCQs on the measurement of development cover the Human Development Index and related indices. The creator of HDI, its three dimensions, the goalposts used in the Education Index, the logarithm applied to income, min-max scaling, India’s category and the Gender Development Index are asked as facts and statements.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 91–100 of 100 questions
Q92. 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.
Q93. Which of the following statements about the Lorenz curve is incorrect?
Explanation
This 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.
Q94. 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?
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.
Q95. Match the items in List I with those in List II:
| Inequality Concept | Interpretation |
|---|---|
| A. Gini Coefficient of 0 | i. High income inequality |
| B. Gini Coefficient of 1 | ii. Absolute income inequality |
| C. Lorenz Curve matching diagonal | iii. Perfect equality distribution |
| D. Lorenz Curve sagging deeply | iv. Perfect income equality Options: |
Explanation
Various terms describe the 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.
Q96. 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.
Q97. 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.
Q98. 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.
Q99. 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.
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.
Q100. 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?
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.Answer key for these questions
| Q | Correct answer |
|---|---|
| 91 | (d) Cumulative population and cumulative income |
| 92 | (b) The line of perfect equality |
| 93 | (c) The curve can rise above the 45-degree diagonal line under normal economic conditions |
| 94 | (c) IV only |
| 95 | (a) A-iv, B-ii, C-iii, D-i |
| 96 | (b) SDG India Index |
| 97 | (c) Front Runner |
| 98 | (d) Laggard |
| 99 | (a) Both A and R are true and R is the correct explanation of A. |
| 100 | (a) Both Statement I and Statement II are correct |
Key facts from Measurement of Development: HDI and Related Indices
- Mahbub ul Haq is credited with creating the Human Development Index.
- The three dimensions of HDI are health, education and standard of living.
- Income is transformed by a logarithm to account for diminishing marginal utility of income.
- The maximum goalposts in the Education Index are 18 years for expected years of schooling and 15 years for mean years of schooling.
- HDI values are normalised by min-max scaling; India falls in the Medium Human Development category.
- The Gender Development Index is the ratio of the female HDI to the male HDI; Sri Lanka has consistently been placed higher than India among its neighbours.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Measurement of Development: HDI and Related Indices?
This page has 100 practice MCQs on Measurement of Development: HDI and Related Indices (Indian Economy). Each has the correct answer, and most have an explanation.
Who created the Human Development Index?
The economist Mahbub ul Haq, who developed it with Amartya Sen’s ideas for the UNDP’s first Human Development Report in 1990. It measures achievement in health, education and standard of living, not income alone.
Why is income transformed using a logarithm in HDI?
To account for diminishing marginal utility of income. Each additional rupee adds less to human well-being at higher incomes, so the index counts a rise in income at low levels as more important than the same rise at high levels.
What does the Gender Development Index measure?
It measures gender gaps in human development achievements by taking the ratio of the female HDI to the male HDI. A value of 1 means that women and men have equal achievement.