The Multi-dimensional Poverty Index developed by ‘Oxford Poverty and Human Development initiative with UNDP support covers which of the following?
- 1.Deprivation of education, health, assets and services at household level.
- 2.Purchasing power parity at national level.
- 3.Extent of budget deficit and GDP growth rate at national level.
Select the correct answer using the codes given below:
Answer & explanation
Answer: (a) 1 only
Only statement 1 is correct, so the answer is (a). The MPI is built from household survey data. It records which households are deprived in health, education and standard of living, which includes assets and basic services. It does not use national macro-economic measures such as purchasing power parity, budget deficit or GDP growth.
- ✓ 1. The MPI uses ten indicators in three dimensions. Two indicators cover health and two cover education. Six cover standard of living: electricity, water, sanitation, flooring, cooking fuel and assets. Poverty is identified at the household level.
- ✗ 2. Purchasing power parity is a currency-conversion tool used for income comparisons between countries. It is not an MPI indicator. The MPI is a non-income measure based on household deprivations.
- ✗ 3. Budget deficit and GDP growth are national fiscal and macro-economic figures. None of the ten MPI indicators measures them.
Remember · MPI (OPHI–UNDP, 2010) has 3 dimensions (health, education, standard of living), 10 indicators and household-level deprivations. It uses no national macro data such as GDP growth, PPP or fiscal deficit.
Sources
- UNDP Human Development Research Paper 2010/11: Acute Multidimensional Poverty: A New Index for Developing Countries (Alkire & Santos) ↗ “The MPI has three dimensions: health, education, and standard of living. These are measured using ten indicators. Poor households are identified and an aggregate measure constructed … The MPI has ten indicators: two each for health and education, and six for assets.”
Question: UPSC Civil Services (Preliminary) 2012, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
