Question

Which of the following statements is/are CORRECT?

• A. The difference between Human Poverty Index and the Human Development Index is that the former measure focuses on deprivations.
• B. The Human Development Index is insensitive to inequalities in the distribution of human development in the population.
• C. Income-based poverty lines are sufficient to capture the well-being of a country’s citizens.
• D. Multi-dimensional Poverty Index considers differences in intra-household distribution of resources.

Hint:

When assessing well-being and poverty, it’s crucial to use multiple dimensions such as health, education, and living standards. Income-based measures alone can miss key aspects of welfare.

Answer 1

The Correct Option is A, B

Understanding each statement.

(A) is correct: The Human Poverty Index (HPI) is specifically designed to measure deprivations in three basic dimensions: longevity, knowledge, and standard of living. Unlike the Human Development Index (HDI), which is an aggregate measure of a country's development based on the same dimensions, HPI focuses on the population's deprivation in these key areas.

(B) is correct: The HDI is a composite index measuring human development through life expectancy, education, and standard of living. However, it does not adjust for inequality within a country. The Inequality-adjusted Human Development Index (IHDI) accounts for inequality in the distribution of these dimensions, but the basic HDI does not.

(C) is incorrect: Income-based poverty lines are not enough to measure well-being comprehensively. They fail to capture essential dimensions such as education and healthcare, which are key aspects of a person's well-being. Hence, using only income to measure poverty provides a limited view of the population’s welfare.

(D) is incorrect: The Multidimensional Poverty Index (MPI) does not specifically account for intra-household distribution of resources. The MPI measures poverty through dimensions like education, health, and standard of living, but it does not directly assess how resources are distributed within households.