Change set

Pick exam & year, then Go.

Question map
Not attempted Correct Incorrect ★ Bookmarked
Loading…
Q40 (CGS/2026) Economy › Growth, Development, Poverty & Employment

Consider the following statements about the Monthly Per Capita Expenditure (MPCE) in India :

Statement-I :

It is often criticised for being an incomplete criterion for measuring poverty.

Statement-II :

It does not differentiate between the very poor and the other poor (transient poor).

Statement-III :

It takes expenditure on food and a few select items as proxy for income.

Which one of the following is correct in respect of the above statements?

Result
Your answer: —  Â·  Correct: A

Explanation

Statement-I is correct. MPCE is frequently criticized for being a unidimensional (monetary) measure that fails to capture the multidimensional nature of poverty, such as access to healthcare, education, and basic infrastructure.

Statement-II is correct. The MPCE-based headcount ratio treats everyone below the poverty line as a single homogenous group. It does not account for the depth of poverty, failing to distinguish between the chronically/very poor and the transient poor who may occasionally slip below the line.

Statement-III is correct. In India, consumption expenditure is used as a proxy for income because income data is difficult to collect accurately in the large informal sector. The poverty line basket specifically selects food and certain non-food items (like clothing and fuel) to determine this proxy.

Both Statement-II and Statement-III are direct reasons why the MPCE is viewed as an incomplete criterion (Statement-I), as they highlight its failure to measure poverty depth and its reliance on a proxy rather than comprehensive welfare indicators.

How others answered
Each bar shows the % of students who chose that option. Green bar = correct answer, blue outline = your choice.
Community Performance
Out of everyone who attempted this question.
65%
got it right
✓ Thank you! We'll review this.

SIMILAR QUESTIONS

IAS · 2025 · Q32 Relevance score: 0.77

Consider the following statements : Statement I : At the 28th United Nations Climate Change Conference (COP28), India refrained from signing the 'Declaration on Climate and Health'. Statement II : The COP28 Declaration on Climate and Health is a binding declaration; and if signed, it becomes mandatory to decarbonize health sector. Statement III : If India's health sector is decarbonized, the resilience of its health-care system may be compromised. Which one of the following is correct in respect of the above statements?

IAS · 1999 · Q12 Relevance score: 0.50

Consider the following statements : Regional disparities in India are high and have been rising in recent years because I. there is persistent investment over time only in select locales. II. some areas are agro-climatically less conducive to development. III. some areas continue to face little or no agrarian transformation and the consequent lack of social and economic opportunities. IV. some areas have faced continuous political instability. Which of the above statements are correct ?

IAS · 1996 · Q70 Relevance score: 0.41

Assertion (A) : Though India’s national income has gone up several fold since 1947, there has been no marked improvement in the per capita income level. Reason (R) : Sizeable proportion of the population of India is still living below the poverty line. In the context of the above two statements which one of the following is correct ?

IAS · 2023 · Q88 Relevance score: 0.37

Consider the following statements : Statement-I : India accounts for 3-2% of global export of goods. Statement-II : Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements?

IAS · 2023 · Q75 Relevance score: -0.02

Consider the following statements : Statement-I : India's public sector health care system largely focuses on curative care with limited preventive, promotive and rehabilitative care. Statement-II : Under India's decentralized approach to health care delivery, the States are primarily responsible for organizing health services. Which one of the following is correct in respect of the above statements?