Consider the following statements regarding Tendulkar Committee Mixed Reference Period (MRP) methodology:
1. The Tendulkar Committee, constituted in 2005 under the chairmanship of Suresh D. Tendulkar, shifted the poverty estimation focus from calorie intake to a basket of goods and services.
2. The 68th round of the NSSO survey, conducted during 2011-12, utilized the Tendulkar Committee's MRP methodology to estimate the national poverty ratio at 21.9 percent, reflecting a decline from the 2004-05 estimates.
3. Under the Mixed Reference Period (MRP) methodology, the consumption expenditure for five low-frequency items-clothing, footwear, durable goods, education, and institutional medical expenses-is collected over a 365-day recall period.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the Tendulkar Committee moved away from the calorie-norm-based poverty line to a Uniform Poverty Line Basket (PLB) encompassing essential goods and services. Statement 3 is correct because the MRP methodology uses a 365-day recall period for five low-frequency items while using a 30-day recall for others. Statement 2 is incorrect because, while the 2011-12 poverty ratio was indeed 21.9%, the 68th round survey actually utilized the Modified Mixed Reference Period (MMRP) methodology, not the MRP methodology.
Consider the following statements regarding NITI Aayog National MPI computation framework:
1. The National MPI framework incorporates the Consumer Price Index for Agricultural Labourers to adjust for regional inflation differentials when calculating the intensity of deprivation.
2. The Alkire-Foster methodology adopted by the NITI Aayog assigns a higher weightage to the health dimension compared to the standard of living dimension to reflect Sustainable Development Goal 3.
3. The 12 indicators used by NITI Aayog include 'Digital Literacy' and 'Access to Internet' as primary metrics under the education dimension to reflect the post-pandemic digital shift.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
The National MPI is a multidimensional index based on the Alkire-Foster methodology, which uses 12 indicators across three equally weighted dimensions (Health, Education, and Standard of Living), not the Consumer Price Index or digital metrics. Statement 1 is false because MPI measures deprivation through non-monetary indicators rather than price indices. Statement 2 is false because the three dimensions are assigned equal weightage (1/3 each), not a higher weightage for health. Statement 3 is false because the 12 indicators are based on the NFHS framework (e.g., nutrition, school attendance, sanitation, housing), and do not include digital literacy or internet access.
Consider the following statements regarding Rangarajan Committee Modified Mixed Reference Period (MMRP):
1. The Modified Mixed Reference Period (MMRP) methodology uses a 365-day reference period for clothing, footwear, durable goods, education, and institutional medical expenses.
2. Under the MMRP, a 7-day reference period is utilized for the collection of data on edible oil, egg, fish, meat, vegetables, fruits, spices, beverages, and refreshments.
3. The Rangarajan Committee was constituted by the Planning Commission in 2012 to review the methodology for poverty estimation in India.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
The Rangarajan Committee, established by the Planning Commission in 2012, introduced the MMRP methodology to better capture consumption patterns by using a 365-day reference period for infrequently purchased items like clothing and durables, and a 7-day reference period for frequently consumed food items like eggs, meat, and vegetables. This approach effectively combines the Uniform Reference Period (URP) and Mixed Reference Period (MRP) frameworks to provide a more accurate estimation of poverty in India. Since all three statements accurately reflect the committee's mandate and the technical parameters of the MMRP, all are correct.
Consider the following statements regarding Consumption expenditure vs Income-based poverty estimation:
1. The Suresh Tendulkar Committee, constituted in 2005, recommended moving away from calorie-based norms to a uniform poverty basket that includes expenditure on health and education.
2. The Expert Group chaired by D.T. Lakdawala in 1993 suggested that poverty estimation should be based on the National Sample Survey Office's income data rather than consumption expenditure to better reflect purchasing power.
3. The Dandekar and Rath Committee of 1971 introduced the concept of the poverty gap index, which was subsequently adopted by the Planning Commission to replace the caloric intake method in the 1974 Five-Year Plan.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the Tendulkar Committee (2005) shifted the focus from calorie-based norms to a uniform poverty basket covering health and education. Statement 2 is incorrect because the Lakdawala Committee (1993) retained the consumption expenditure approach based on NSSO data, not income, as income data is often volatile and difficult to capture in rural economies. Statement 3 is incorrect because the Dandekar and Rath Committee (1971) actually pioneered the calorie-based consumption norm (2250 calories per day), and the poverty gap index was not the primary replacement for caloric intake in the 1974 Five-Year Plan.
Consider the following statements regarding Multidimensional Poverty Index (MPI) dimensions and indicators:
1. The MPI threshold for identifying a multidimensionally poor person is set at a deprivation score of 0.5, which corresponds to experiencing at least half of the weighted indicators simultaneously.
2. The MPI framework assesses poverty across three primary dimensions: health, education, and standard of living, which are further divided into ten specific indicators.
3. The nutrition indicator within the health dimension of the MPI is calculated based on the Body Mass Index of adults and the stunting levels of children under the age of ten.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as the Global MPI, developed by OPHI and UNDP, utilizes 10 indicators across health, education, and standard of living dimensions. Statement 1 is incorrect because a person is identified as multidimensionally poor if their deprivation score is 1/3 (33.3%) or higher, not 0.5. Statement 3 is incorrect because the nutrition indicator for children is based on stunting and wasting for those under five, not ten, and adult nutrition is assessed based on BMI.
Consider the following statements regarding Calorie intake vs Nutritional outcome debates:
1. The Expert Group on Poverty Estimation chaired by Suresh Tendulkar incorporated health and education expenditure into the poverty line basket, effectively doubling the calorie-based threshold established by the 1979 Alagh Committee.
2. The Alagh Committee, constituted by the Planning Commission in 1979, defined the poverty line based on a daily nutritional requirement of 2,400 calories in rural areas and 2,100 calories in urban areas.
3. The World Bank's global poverty line of $1.90 per day, updated in 2015, incorporates a standardized nutritional intake conversion factor derived from the FAO's regional food basket requirements for developing economies.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as the 1979 Alagh Committee established the first official poverty line based on daily nutritional requirements of 2,400 calories (rural) and 2,100 calories (urban). Statement 1 is incorrect because the Tendulkar Committee moved away from a calorie-based threshold to a uniform poverty basket that included health and education, rather than doubling the calorie threshold. Statement 3 is incorrect because the World Bank's global poverty line is based on purchasing power parity (PPP) of currencies across countries to ensure a uniform standard of living, not on a standardized nutritional conversion factor from the FAO.
Consider the following statements regarding Purchasing Power Parity (PPP) in international poverty comparisons:
1. The International Poverty Line was previously set at $1.90 per day using 2011 PPP prices before the 2022 update to the 2017 PPP methodology.
2. The World Bank utilizes the Consumer Price Index (CPI) to adjust the international poverty line for inflation within a country between the reference year of the PPP and the current year.
3. Purchasing Power Parity (PPP) conversion factors eliminate the effects of price level differences between countries, allowing for the comparison of real consumption levels.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the World Bank updated the poverty line from $1.90 (2011 PPP) to $2.15 (2017 PPP) in 2022 to reflect newer price data. Statement 2 is correct because the World Bank uses national CPIs to inflate the international poverty line from the PPP reference year to current prices, ensuring the purchasing power remains constant. Statement 3 is correct because PPP conversion factors adjust for differences in the cost of living and price levels across countries, providing a more accurate measure of real consumption than market exchange rates.
Consider the following statements regarding Rangarajan Committee Modified Mixed Reference Period (MMRP):
1. The Rangarajan Committee report, submitted in 2014, estimated the national poverty line at a monthly per capita expenditure of ₹972 for rural areas and ₹1,407 for urban areas.
2. The Rangarajan Committee methodology departed from the Tendulkar Committee approach by decoupling the poverty line from the calorie-based norm of 2,400 kcal in rural areas.
3. The MMRP methodology replaced the Uniform Reference Period (URP) and Mixed Reference Period (MRP) to capture consumption patterns with higher granularity.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
The Rangarajan Committee (2014) correctly set the poverty line at ₹972 (rural) and ₹1,407 (urban) per capita monthly expenditure, moving away from the Tendulkar Committee's calorie-based approach by adopting a normative level of adequate nutrition and non-food expenses. Statement 3 is accurate because the Modified Mixed Reference Period (MMRP) was introduced to improve granularity by using a 365-day recall period for low-frequency items (clothing, footwear, durables, education, and institutional health) and a 7-day recall for food items, effectively replacing the limitations of the earlier URP and MRP methods.
Consider the following statements regarding Consumer Price Index for Agricultural Labourers (CPI-AL) usage:
1. The indices for CPI-AL are released at both the all-India level and for 20 individual states to account for regional price variations.
2. The data collected for CPI-AL serves as a primary input for the periodic revision of minimum wages for agricultural workers under the Minimum Wages Act of 1948.
3. The weighting diagram for the CPI-AL is derived from the results of the Consumer Expenditure Survey conducted by the National Sample Survey Office.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
The CPI-AL is compiled by the Labour Bureau and released for 20 states and at the all-India level to reflect regional price disparities. It is legally mandated as the basis for revising minimum wages for agricultural workers under the Minimum Wages Act, 1948, ensuring wages keep pace with inflation. The weighting diagram is scientifically derived from the Consumer Expenditure Survey (CES) conducted by the National Sample Survey Office (NSSO) to accurately represent the consumption basket of agricultural households.
Consider the following statements regarding Alagh Committee calorie-based consumption norms:
1. The Alagh Committee methodology defined the poverty line as the per capita consumption expenditure level that met the specified calorie requirements.
2. The committee utilized the 1973-74 National Sample Survey data on household consumer expenditure to estimate the poverty line.
3. The Alagh Committee was established in 1979 under the Sixth Five-Year Plan and utilized the 1977-78 consumer expenditure survey to set the national poverty line at 2250 calories for both rural and urban sectors.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
The Alagh Committee (1979) correctly defined the poverty line based on per capita consumption expenditure required to meet specific calorie norms, utilizing 1973-74 NSSO data to derive these thresholds. Statement 3 is incorrect because, while the committee recommended 2,400 calories for rural areas and 2,100 calories for urban areas, it did not set a uniform national average of 2,250 calories for both sectors.
Consider the following statements regarding Alagh Committee calorie-based consumption norms:
1. For urban areas, the Alagh Committee recommended a nutritional intake benchmark of 2100 calories per person per day.
2. The methodology adopted by the Alagh Committee relied on a nutritional requirement of 2400 calories per person per day for rural areas.
3. The Alagh Committee was constituted by the Planning Commission in 1977 to define the poverty line in India.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
The Alagh Committee, constituted by the Planning Commission in 1977, was the first to formally define the poverty line based on nutritional requirements. It established a calorie benchmark of 2400 calories per person per day for rural areas and 2100 calories per person per day for urban areas, accounting for differences in physical activity levels. As all three statements accurately reflect the committee's mandate and its specific caloric recommendations, they are entirely correct.
Consider the following statements regarding Urban-rural poverty line differential mechanisms:
1. The 1993 Lakdawala Expert Group methodology utilized the Consumer Price Index for Urban Non-Manual Employees to calculate state-specific poverty lines for both rural and urban areas across all Indian states.
2. The 2012 Rangarajan Committee report adopted the methodology of the 2009 Tendulkar Committee by retaining the calorie norm as the primary determinant for calculating the rural-urban poverty line differential.
3. The 1979 Alagh Committee report utilized the National Sample Survey Office data from the 28th round to establish a uniform calorie intake threshold of 2250 calories for both rural and urban population segments.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Lakdawala Committee used the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural areas and the Consumer Price Index for Industrial Workers (CPI-IW) for urban areas, not the CPI for Urban Non-Manual Employees. Statement 2 is incorrect because the Rangarajan Committee explicitly moved away from the Tendulkar Committee's approach by decoupling poverty lines from calorie norms, instead using normative levels of adequate nutrition and clothing, rent, and conveyance. Statement 3 is incorrect because the Alagh Committee (1979) established a differential threshold of 2400 calories for rural areas and 2100 calories for urban areas, rather than a uniform 2250 calories.
Consider the following statements regarding Socio-Economic and Caste Census (SECC) for beneficiary identification:
1. The NITI Aayog's Multidimensional Poverty Index, introduced in 2021, utilizes the SECC 2011 raw data as its primary source for calculating health, education, and standard of living indicators across all states.
2. The SECC 2011 framework identifies households for welfare schemes based on seven deprivation criteria, including households with no able-bodied adult member and those living in one-room kutcha houses.
3. The 2011 Census of India and the SECC 2011 were conducted simultaneously under the Census Act of 1948, allowing for the legal disclosure of individual caste data in the public domain.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct because the SECC 2011 uses seven automatic exclusion and seven deprivation criteria to identify beneficiaries, including indicators like single-room kutcha houses and the absence of able-bodied adult members. Statement 1 is incorrect because the NITI Aayog's Multidimensional Poverty Index is primarily based on the National Family Health Survey (NFHS), not SECC 2011 data. Statement 3 is incorrect because while SECC 2011 was conducted alongside the 2011 Census, it was not governed by the Census Act of 1948, which mandates confidentiality, and the caste data from SECC 2011 was never officially released to the public.
Consider the following statements regarding Lakdawala Committee state-specific poverty lines:
1. The Lakdawala Committee methodology utilized the National Sample Survey Office data from the 43rd round to calculate state-specific inflation rates for the base year of 1989.
2. The Lakdawala Committee framework allowed for the inclusion of public expenditure on education and sanitation as a direct component of the state-specific poverty line calculation.
3. The Expert Group on Estimation of Proportion and Number of Poor, chaired by D.T. Lakdawala, proposed replacing the calorie-based consumption norm with a multi-dimensional index including healthcare access.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because the Lakdawala Committee (1993) maintained the calorie-based consumption norm (2400 kcal for rural and 2100 kcal for urban areas) rather than introducing a multi-dimensional index or including public expenditure on social services. Furthermore, the committee did not use the 43rd round for base-year inflation; instead, it used the 1973-74 poverty line as the base and updated it using state-specific Consumer Price Indices (CPI-AL for rural and CPI-IW for urban) to account for regional price variations. Consequently, the methodology remained focused on private consumption expenditure rather than incorporating public service delivery or multidimensional poverty metrics.
Consider the following statements regarding Consumer Price Index for Industrial Workers (CPI-IW) usage:
1. The weighting diagram for the 2016 series of the CPI-IW was derived from the Working Class Family Income and Expenditure Survey conducted in 2013-14.
2. The Labour Bureau publishes the CPI-IW on a monthly basis, and the index currently incorporates a 15 percent weight for housing costs based on the 2001 census data.
3. Data collection for the CPI-IW involves 317 markets across 88 industrial centers spread throughout various states and union territories in India.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the 2016 series of CPI-IW is based on the 2013-14 Working Class Family Income and Expenditure Survey. Statement 3 is correct because the Labour Bureau collects price data from 317 markets across 88 industrial centers. Statement 2 is incorrect because while the Labour Bureau publishes the index monthly, the housing weight in the 2016 series was revised to 16.87 percent, not 15 percent, and it is based on the 2016 survey data rather than the 2001 census.
Consider the following statements regarding Multidimensional Poverty Index (MPI) dimensions and indicators:
1. The National MPI report released by NITI Aayog utilizes data from the Periodic Labour Force Survey to calculate the deprivation scores for rural and urban households across India.
2. The Global MPI methodology assigns a higher weight to the education dimension compared to the health dimension, reflecting the long-term impact of schooling on household economic mobility.
3. The Global Multidimensional Poverty Index is jointly developed by the Oxford Poverty and Human Development Initiative and the United Nations Development Programme.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as the Global MPI is indeed a collaborative effort between the Oxford Poverty and Human Development Initiative (OPHI) and the UNDP. Statement 1 is incorrect because the National MPI by NITI Aayog utilizes the National Family Health Survey (NFHS) data, not the Periodic Labour Force Survey. Statement 2 is incorrect because the Global MPI methodology assigns equal weights of one-third each to the dimensions of health, education, and standard of living, rather than prioritizing education over health.
Consider the following statements regarding Tendulkar Committee Mixed Reference Period (MRP) methodology:
1. The Alagh Committee established the initial poverty line methodology in 1979, which the Tendulkar Committee refined by incorporating private expenditure on health and education as separate components of the consumption basket.
2. The Planning Commission adopted the Tendulkar Committee recommendations in 2011, which led to the inclusion of public distribution system (PDS) benefits as a direct income supplement in the final poverty estimation formula.
3. Data collection for the Tendulkar Committee's MRP approach relies on the National Sample Survey Office (NSSO) quinquennial rounds, which were transitioned to an annual frequency starting from the 66th round in 2009-10.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because while the Alagh Committee (1979) established the calorie-based poverty line, the Tendulkar Committee shifted the focus from calorie consumption to a uniform basket of goods and services, including health and education, but did not treat them as separate components. Statement 2 is incorrect because the Tendulkar Committee did not include PDS benefits as a direct income supplement; instead, it used a uniform poverty line basket (PLB) across rural and urban areas and moved away from the calorie-norm approach. Statement 3 is incorrect because, although the 66th round (2009-10) was a large-scale survey, the NSSO did not transition to a strictly annual frequency for these specific consumption expenditure surveys, which continued to be conducted at irregular intervals.
Consider the following statements regarding Consumption surveys by National Sample Survey Office (NSSO):
1. The National Statistical Office, formed in 2019 through the merger of the CSO and NSSO, serves as the nodal agency for conducting large-scale consumption expenditure surveys in India.
2. The Expert Group under Arvind Panagariya suggested the adoption of a multidimensional poverty index aligned with the Global Multidimensional Poverty Index framework developed by the UNDP and the Oxford Poverty and Human Development Initiative.
3. The Planning Commission utilized the Uniform Recall Period for all consumption items until the 55th round of the NSS, after which it transitioned to the Modified Mixed Recall Period for all subsequent poverty estimations.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the National Statistical Office (NSO) was established in 2019 by merging the Central Statistics Office (CSO) and the National Sample Survey Office (NSSO) to oversee large-scale data collection. Statement 2 is incorrect because the Arvind Panagariya-led task force focused on poverty estimation methodologies, while the NITI Aayog's National Multidimensional Poverty Index is based on the Alkire-Foster methodology, not specifically a recommendation by that group. Statement 3 is incorrect because the Planning Commission utilized the Uniform Recall Period (URP) and Mixed Recall Period (MRP) for various rounds, but the transition to the Modified Mixed Recall Period (MMRP) was primarily recommended by the Tendulkar Committee and implemented later, not immediately following the 55th round for all subsequent estimations.
Consider the following statements regarding Socio-Economic and Caste Census (SECC) for beneficiary identification:
1. The SECC 2011 data collection process utilized a three-step verification method involving Gram Sabhas, district-level scrutiny, and final publication of draft lists for public objection.
2. The 2011 SECC process involved the digitization of rural household data by the National Informatics Centre, which categorized families into 'Antyodaya' and 'Priority' groups for direct benefit transfers.
3. The Tendulkar Committee methodology, which preceded the widespread adoption of SECC data for beneficiary identification, estimated the poverty line at a monthly per capita expenditure of ₹816 in rural areas and ₹1,000 in urban areas at 2011-12 prices.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the SECC 2011 followed a transparent process involving Gram Sabha verification and public claims/objections to ensure accurate identification. Statement 3 is correct because the Tendulkar Committee recommended a poverty line based on Monthly Per Capita Expenditure (MPCE) of ₹816 for rural and ₹1,000 for urban areas at 2011-12 prices. Statement 2 is incorrect because the SECC 2011 did not categorize families into 'Antyodaya' and 'Priority' groups; these categories were specifically introduced under the National Food Security Act (NFSA), 2013, to identify beneficiaries for subsidized food grains.
Consider the following statements regarding Consumer Price Index for Industrial Workers (CPI-IW) usage:
1. The basket of goods and services used for the 2016 series of the CPI-IW includes 463 items, reflecting updated consumption patterns of the industrial workforce.
2. The Ministry of Statistics and Programme Implementation oversees the CPI-IW calculation, which replaced the Wholesale Price Index as the primary indicator for urban inflation in 2014.
3. The Consumer Price Index for Industrial Workers is utilized by the government to determine the Dearness Allowance for central government employees and pensioners.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the 2016 series of CPI-IW, launched in 2020, updated the basket to 463 items to reflect modern consumption patterns, and Statement 3 is correct because the government uses CPI-IW data to calculate the Dearness Allowance (DA) for central employees and pensioners. Statement 2 is incorrect because while the Labour Bureau under the Ministry of Labour and Employment compiles the CPI-IW, it did not replace the Wholesale Price Index (WPI) as the primary indicator for urban inflation; rather, the CPI-Combined (CPI-C) released by the NSO became the headline inflation measure in 2014.
Consider the following statements regarding Alagh Committee calorie-based consumption norms:
1. The recommendations of the Alagh Committee remained the standard framework for poverty estimation in India until the Lakdawala Committee report in 1993.
2. Y.K. Alagh chaired the task force that provided the first official poverty estimation methodology based on nutritional norms.
3. The Alagh Committee approach calculated the poverty line by identifying the expenditure class where the average calorie intake met the prescribed norms.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
The Alagh Committee (1979) established the first official poverty line based on nutritional requirements of 2,400 kcal/day for rural areas and 2,100 kcal/day for urban areas, which remained the benchmark until the Lakdawala Committee (1993) updated the methodology. The committee derived the poverty line by identifying the monthly per capita expenditure class where these specific calorie norms were met, effectively linking nutritional intake to monetary expenditure. Since all three statements accurately reflect the historical context and the methodology of the Alagh Committee, they are all correct.
Consider the following statements regarding Poverty line basket (PLB) composition and updates:
1. The NITI Aayog currently utilizes the Multidimensional Poverty Index, which incorporates indicators such as nutrition, school attendance, and access to cooking fuel, to supplement consumption-based poverty data.
2. The Lakdawala Committee, which submitted its report in 1993, utilized the Consumer Price Index for Agricultural Labourers for rural poverty and the Consumer Price Index for Industrial Workers for urban poverty.
3. The Alagh Committee, established in 1979, was the first to define the poverty line based on nutritional requirements, specifically 2,400 calories in rural areas and 2,100 calories in urban areas.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as NITI Aayog's National Multidimensional Poverty Index (MPI) complements consumption data by measuring deprivations in health, education, and standard of living. Statement 2 is correct because the Lakdawala Committee (1993) recommended using CPI-AL for rural and CPI-IW for urban areas to adjust poverty lines for inflation. Statement 3 is correct as the 1979 Alagh Committee was the pioneer in setting poverty lines based on a minimum daily intake of 2,400 calories in rural areas and 2,100 calories in urban areas.
Consider the following statements regarding NITI Aayog National MPI computation framework:
1. The National MPI is published on a biennial basis by the Ministry of Statistics and Programme Implementation, utilizing the Periodic Labour Force Survey as its primary data source.
2. The indicator of 'Bank Account' under the standard of living dimension is assessed based on whether at least one member of the household has an account with a financial institution.
3. The deprivation cutoff for the 'Nutrition' indicator is determined by the Body Mass Index of adult household members as recorded in the latest round of the Periodic Labour Force Survey.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct because the 'Bank Account' indicator under the National MPI framework considers a household deprived if no member has an account with a bank, post office, or microfinance institution. Statement 1 is incorrect because the National MPI is published by NITI Aayog, not the Ministry of Statistics and Programme Implementation, and it utilizes the National Family Health Survey (NFHS) rather than the Periodic Labour Force Survey. Statement 3 is incorrect because the 'Nutrition' indicator is assessed using NFHS data based on the Body Mass Index (BMI) of household members aged 15-49, not the Periodic Labour Force Survey.
Consider the following statements regarding Squared Poverty Gap and Sen Index applications:
1. Amartya Sen introduced the Sen Index in 1976 to combine the headcount ratio, the income gap ratio, and the Gini coefficient of the poor into a single measure.
2. The Tendulkar Committee report, submitted in 2009, shifted the poverty estimation methodology from a calorie-based intake model to a uniform poverty line basket.
3. The Squared Poverty Gap index is sensitive to the distribution of income among the poor, as it assigns greater weight to the individuals further below the poverty line.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as Amartya Sen's 1976 index uniquely integrates the headcount ratio, income gap, and inequality (Gini coefficient) among the poor to address the limitations of simpler metrics. Statement 2 is correct because the 2009 Tendulkar Committee moved away from the calorie-norm-only approach, adopting a Uniform Poverty Line Basket (UPLB) that includes expenditure on health and education. Statement 3 is correct because the Squared Poverty Gap index squares the income shortfall, mathematically ensuring that the poorest individuals contribute disproportionately more to the final index value, thereby reflecting the severity of poverty.
Consider the following statements regarding Urban-rural poverty line differential mechanisms:
1. The Rangarajan Committee, established in 2012, proposed a higher monthly per capita consumption expenditure of 972 rupees for rural areas and 1407 rupees for urban areas to define the poverty line.
2. The NITI Aayog currently utilizes the Multidimensional Poverty Index, which incorporates indicators like nutrition, child mortality, and school attendance, alongside traditional consumption-based metrics.
3. The 2011-12 poverty estimates calculated by the Planning Commission indicated that the rural poverty ratio was 25.7 percent, while the urban poverty ratio stood at 13.7 percent.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
The Rangarajan Committee (2012) indeed set the poverty line at Rs 972 (rural) and Rs 1407 (urban) per capita monthly expenditure, replacing the earlier Tendulkar methodology. NITI Aayog's National Multidimensional Poverty Index (MPI) complements traditional consumption metrics by evaluating 12 indicators across health, education, and standard of living, aligned with the Global MPI framework. The 2011-12 Planning Commission estimates, based on the Tendulkar Committee methodology, accurately reported rural poverty at 25.7% and urban poverty at 13.7%, confirming all three statements are factually correct.
Consider the following statements regarding Multidimensional Poverty Index (MPI) dimensions and indicators:
1. The World Bank integrates the Global MPI into its annual World Development Report to provide a comparative analysis of poverty reduction strategies across G20 member nations.
2. Each of the three dimensions in the MPI methodology is assigned an equal weight of one-third, ensuring that health, education, and standard of living contribute equally to the final poverty score.
3. In the National MPI published by NITI Aayog, the 'standard of living' dimension includes indicators such as access to cooking fuel, sanitation, drinking water, electricity, housing, and assets.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the Global MPI is developed by the UNDP and the Oxford Poverty and Human Development Initiative (OPHI), not the World Bank. Statement 2 is correct as the MPI methodology assigns an equal weight of one-third to each of the three dimensions-health, education, and standard of living-to ensure a balanced assessment. Statement 3 is correct because NITI Aayog's National MPI measures the standard of living dimension using six specific indicators: cooking fuel, sanitation, drinking water, electricity, housing, and assets.
Consider the following statements regarding Lakdawala Committee state-specific poverty lines:
1. Under the Lakdawala methodology, the poverty line was adjusted for inter-state price differentials using the Consumer Price Index for Agricultural Labourers and the Consumer Price Index for Industrial Workers.
2. The Lakdawala Committee report, submitted in 1993, continued the practice of defining poverty in terms of a minimum nutritional requirement of 2400 calories in rural areas and 2100 calories in urban areas.
3. The Lakdawala Committee, constituted in 1989, recommended the use of state-specific poverty lines based on the 1973-74 all-India poverty line.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
The Lakdawala Committee (1993) maintained the Alagh Committee's nutritional norms of 2400 kcal (rural) and 2100 kcal (urban) while shifting to state-specific poverty lines by adjusting the 1973-74 national poverty line for inter-state price differentials. It utilized the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural areas and the Consumer Price Index for Industrial Workers (CPI-IW) for urban areas to calculate these regional variations. All three statements are factually correct as they accurately reflect the methodology, the nutritional basis, and the historical origin of the committee's recommendations.
Consider the following statements regarding Consumption expenditure vs Income-based poverty estimation:
1. The 1962 Working Group formed by the Planning Commission established a national minimum consumption expenditure of Rs 20 per capita per month, which was later adjusted for regional price variations by the 1973 Minhas Committee.
2. The NITI Aayog's Multidimensional Poverty Index utilizes the Alkire-Foster methodology to track deprivation across health, education, and standard of living indicators.
3. The Alagh Committee, established in 1979, defined the poverty line based on a nutritional requirement of 2,400 calories per person per day in rural areas and 2,100 calories in urban areas.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because while the 1962 Working Group did set the Rs 20 benchmark, the 1973 methodology was developed by the Alagh Committee, not the Minhas Committee. Statement 2 is correct as the NITI Aayog's MPI uses the globally recognized Alkire-Foster method to measure multidimensional deprivation across 12 indicators in health, education, and living standards. Statement 3 is correct because the 1979 Alagh Committee formally introduced the nutritional criterion, setting the poverty line at 2,400 calories for rural areas and 2,100 calories for urban areas.
Consider the following statements regarding Global MPI vs National MPI methodological divergence:
1. The National MPI methodology incorporates the indicator of maternal health, which is derived from institutional delivery data and is weighted equally with the child mortality indicator.
2. The Global MPI uses the National Family Health Survey as its primary data source for India, ensuring that the indicators for housing and sanitation remain identical to the National MPI.
3. Both methodologies define a person as multidimensionally poor if their deprivation score is 33.33 percent or higher, a threshold established by the 2010 Human Development Report.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the National MPI adds two indicators-maternal health and bank accounts-not found in the Global MPI, but maternal health is not weighted equally with child mortality. Statement 2 is incorrect because while both use NFHS data, the Global MPI uses a standardized global framework, whereas the National MPI is customized for India with 12 indicators compared to the Global MPI's 10. Statement 3 is incorrect because, although both use the 33.33% threshold, the Global MPI is calculated by the UNDP and OPHI, while the National MPI is specifically developed by NITI Aayog to align with national development priorities, making them distinct methodological frameworks.
Consider the following statements regarding Headcount Ratio (HCR) and Poverty Gap Index:
1. The Alagh Committee established the first official poverty line in 1979, defining the threshold based on a daily intake of 2400 calories for rural areas and 2100 calories for urban areas.
2. The Squared Poverty Gap Index accounts for the severity of poverty by assigning higher weights to the poorest individuals, a metric first introduced by the Lakdawala Committee in 1993.
3. The Multidimensional Poverty Index, launched by the UNDP in 2010, utilizes the Headcount Ratio as its primary indicator to measure deprivation across health, education, and standard of living.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because while the Alagh Committee (1979) did define the calorie norms, the first official poverty line was actually established by the Working Group of the Planning Commission in 1962. Statement 2 is incorrect because the Squared Poverty Gap Index, which measures the severity of poverty by squaring the poverty gap, was introduced by Foster, Greer, and Thorbecke (FGT index) in 1984, not by the Lakdawala Committee. Statement 3 is incorrect because the Multidimensional Poverty Index (MPI) uses the 'Intensity of Deprivation' alongside the Headcount Ratio to identify who is poor, and it was developed by the Oxford Poverty and Human Development Initiative (OPHI) and UNDP, not by using the HCR as its sole primary indicator.
Consider the following statements regarding Global MPI vs National MPI methodological divergence:
1. The National MPI, developed by NITI Aayog, utilizes 12 indicators for poverty estimation, whereas the Global MPI published by the UNDP and OPHI incorporates 10 indicators.
2. Both the National MPI and the Global MPI utilize the Alkire-Foster method to calculate poverty, with both frameworks setting the deprivation cutoff at 40 percent of the weighted indicators.
3. The Global MPI methodology accounts for the lack of access to clean cooking fuel as a health indicator, while the National MPI categorizes this specific metric under the standard of living dimension.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct because India's National MPI, launched by NITI Aayog, uses 12 indicators across three dimensions, while the Global MPI uses 10 indicators. Statement 2 is incorrect because while both use the Alkire-Foster method, the deprivation cutoff for both is 33.33 percent (one-third of weighted indicators), not 40 percent. Statement 3 is incorrect because, in both the National and Global MPI frameworks, access to clean cooking fuel is consistently categorized under the 'Standard of Living' dimension, not 'Health'.
Consider the following statements regarding Consumer Price Index for Industrial Workers (CPI-IW) usage:
1. The Labour Bureau under the Ministry of Labour and Employment is responsible for the compilation and maintenance of the Consumer Price Index for Industrial Workers.
2. The Planning Commission historically utilized the CPI-IW to adjust poverty lines for urban areas, and the 2011 Tendulkar Committee recommended its use for rural poverty estimation.
3. The base year for the current series of the Consumer Price Index for Industrial Workers was revised to 2016 from the previous base year of 2001.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the Labour Bureau, an attached office under the Ministry of Labour and Employment, is the nodal agency for compiling CPI-IW. Statement 3 is correct because the base year was officially updated from 2001 to 2016 in September 2020 to reflect changing consumption patterns. Statement 2 is incorrect because, while the Planning Commission did use CPI-IW for urban areas, the Tendulkar Committee actually recommended the use of Consumer Price Index for Agricultural Labourers (CPI-AL) for rural poverty estimation, not CPI-IW.
Consider the following statements regarding Socio-Economic and Caste Census (SECC) for beneficiary identification:
1. The Socio-Economic and Caste Census 2011 was conducted by the Ministry of Rural Development in collaboration with the Ministry of Housing and Urban Poverty Alleviation.
2. The Rangarajan Committee report, submitted in 2014, recommended the use of the SECC 2011 database to replace the Planning Commission's consumption-based poverty estimates for the Public Distribution System.
3. The Ministry of Statistics and Programme Implementation launched the SECC 2011 as a successor to the 2002 BPL Census, adopting the same income-based threshold for identifying rural beneficiaries.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the SECC 2011 was a joint initiative of the Ministry of Rural Development and the Ministry of Housing and Urban Poverty Alleviation. Statement 2 is incorrect because while the Rangarajan Committee suggested moving toward a multidimensional poverty index, it did not advocate for replacing the consumption-based methodology with SECC for the PDS; rather, the National Food Security Act (2013) shifted the focus to coverage ratios. Statement 3 is incorrect because SECC 2011 moved away from the income-based BPL threshold used in the 2002 Census, instead utilizing a multidimensional approach based on exclusion and inclusion criteria to identify beneficiaries.
Consider the following statements regarding Consumption surveys by National Sample Survey Office (NSSO):
1. The Alagh Committee methodology adopted in 1979 established a rural poverty line of 2,400 calories per person per day and linked the national poverty estimation to the 1973-74 wholesale price index.
2. The Rangarajan Committee report submitted in 2014 recommended a monthly per capita expenditure of Rs 972 for rural areas and Rs 1,407 for urban areas to define the poverty line.
3. The Household Consumer Expenditure Survey of 2017-18 was processed by the Ministry of Statistics and Programme Implementation but withheld from public release due to concerns regarding data quality and comparability.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as the 2014 Rangarajan Committee defined the poverty line based on monthly per capita expenditure of Rs 972 for rural and Rs 1,407 for urban areas. Statement 1 is incorrect because the Alagh Committee linked poverty estimation to the 1973-74 price level based on the Consumer Price Index (CPI), not the Wholesale Price Index. Statement 3 is incorrect because, while the 2017-18 survey was withheld, it was officially 'not released' by the government rather than being formally processed and then withheld due to comparability concerns, and the Ministry of Statistics and Programme Implementation (MoSPI) subsequently conducted a new survey for 2022-23.
Consider the following statements regarding Periodic Labour Force Survey (PLFS) data integration:
1. The Rangarajan Committee report submitted in 2014 recommended a uniform poverty line of 32 rupees for rural areas and 47 rupees for urban areas based on the Modified Mixed Reference Period.
2. The Periodic Labour Force Survey (PLFS) was launched by the National Statistical Office in April 2017 to provide more frequent estimates of employment and unemployment indicators.
3. The Tendulkar Committee methodology for poverty estimation utilized the Mixed Reference Period (MRP) approach, which considers a 365-day recall period for low-frequency items like clothing and footwear.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the Rangarajan Committee recommended higher poverty lines of ₹32 for rural and ₹47 for urban areas per capita per day, but these were based on the Modified Mixed Reference Period (MMRP), not the simple Mixed Reference Period. Statement 2 is correct as the NSO launched the PLFS in April 2017 to replace the quinquennial Employment-Unemployment Surveys with more frequent annual data. Statement 3 is correct because the Tendulkar Committee methodology shifted from the Uniform Reference Period to the Mixed Reference Period (MRP), which uses a 365-day recall for low-frequency items like clothing, footwear, durables, education, and institutional medical expenses.
Consider the following statements regarding Calorie intake vs Nutritional outcome debates:
1. The Lakdawala Expert Group report of 1993 retained the state-specific poverty lines but shifted the calorie-based consumption basket to align with the 1991 Census occupational distribution data.
2. The Tendulkar Committee report submitted in 2009 abandoned the calorie-norm approach in favor of a uniform poverty line basket, which was subsequently adopted by the Ministry of Finance for the 2011-12 fiscal planning.
3. The Rangarajan Committee, established in 2012, increased the calorie requirement to 2,500 for rural areas and 2,300 for urban areas to account for the rising cost of non-food essential items.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Lakdawala Committee (1993) maintained the calorie-based consumption basket derived from the 1973-74 Task Force norms, not the 1991 Census. Statement 2 is incorrect because while the Tendulkar Committee shifted away from calorie-norm-based poverty lines, it was the Planning Commission, not the Ministry of Finance, that adopted these estimates for fiscal planning. Statement 3 is incorrect because the Rangarajan Committee (2012) recommended a calorie norm of 2,155 kcal for rural and 2,090 kcal for urban areas, not 2,500 and 2,300 respectively.
Consider the following statements regarding Poverty line basket (PLB) composition and updates:
1. The Planning Commission adopted the Expert Group methodology of 1993 to replace the calorie-based norm with a standardized monthly per capita consumption expenditure of Rs 454 for rural households.
2. The Saxena Committee, appointed by the Ministry of Rural Development in 2009, proposed that the poverty line be calculated by aggregating the bottom 50 percent of the population based on the 2001 Census data.
3. The 2011-12 poverty estimates released by the Planning Commission utilized the Modified Mixed Reference Period, which accounts for expenditure on low-frequency items like clothing and footwear over a 365-day recall period.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Lakdawala Committee (1993) retained the calorie-based norm and did not introduce a standardized Rs 454 figure; that figure is associated with the Tendulkar Committee. Statement 2 is incorrect because the Saxena Committee proposed that 50% of the population be classified as BPL, but it did not link this to the 2001 Census for poverty line calculation, focusing instead on social indicators for rural identification. Statement 3 is incorrect because the Modified Mixed Reference Period (MMRP) uses a 365-day recall for low-frequency items like clothing, footwear, durables, education, and institutional medical expenses, not just clothing and footwear.
Consider the following statements regarding Headcount Ratio (HCR) and Poverty Gap Index:
1. The Headcount Ratio represents the proportion of a population that lives below the poverty line, calculated by dividing the number of poor individuals by the total population.
2. The Tendulkar Committee report of 2009 shifted the poverty estimation methodology from calorie-based intake to a uniform poverty line basket, which includes health and education expenditures.
3. The Poverty Gap Index measures the average shortfall of the total population from the poverty line, expressed as a ratio of the poverty line itself.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as HCR is the simplest measure of poverty, calculated as the percentage of the population living below the poverty line. Statement 3 is correct because the Poverty Gap Index reflects the intensity of poverty by measuring the average distance of the poor from the poverty line. Statement 2 is incorrect because, while the Tendulkar Committee did shift away from a purely calorie-based norm, it introduced a 'Uniform Poverty Line Basket' that included private expenditure on health and education, but it did not move to a 'uniform' basket across all states; it maintained state-specific poverty lines.
Consider the following statements regarding Urban-rural poverty line differential mechanisms:
1. The Alagh Committee, constituted in 1979, introduced the concept of a poverty line based on nutritional requirements of 2400 calories for rural areas and 2100 calories for urban areas.
2. The Tendulkar Committee report submitted in 2009 shifted the focus from calorie-based consumption to a uniform poverty line basket across rural and urban sectors, adjusting for state-specific price differentials.
3. The Lakdawala Expert Group report of 1993 recommended the use of state-specific poverty lines based on the Consumer Price Index for Agricultural Labourers for rural areas and the Consumer Price Index for Industrial Workers for urban areas.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the 1979 Alagh Committee established the first official poverty line based on daily calorie intake norms of 2400 kcal (rural) and 2100 kcal (urban). Statement 2 is correct because the 2009 Tendulkar Committee moved away from calorie-anchoring to a uniform Poverty Line Basket (PLB) while accounting for state-specific price variations. Statement 3 is correct as the 1993 Lakdawala Committee utilized the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural poverty and the Consumer Price Index for Industrial Workers (CPI-IW) for urban poverty to calculate state-level indices.
Consider the following statements regarding Rangarajan Committee Modified Mixed Reference Period (MMRP):
1. The committee recommended that the poverty line be based on the normative levels of adequate nutrition, clothing, house rent, conveyance, and education, along with a behavioral determination of other non-food expenses.
2. The Rangarajan Committee report was released in 2014 and adopted the 30-day recall period for all food items to maintain consistency with the earlier Lakdawala Committee recommendations.
3. The MMRP framework was introduced by the Planning Commission in 2009 and utilizes a 365-day recall period for all non-food items, including frequently purchased household consumables.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the Rangarajan Committee (2014) defined the poverty line based on normative nutritional requirements and behavioral patterns for non-food items. Statement 2 is incorrect because the committee moved away from the Lakdawala methodology, instead adopting the Modified Mixed Reference Period (MMRP) rather than a simple 30-day recall. Statement 3 is incorrect because the MMRP, introduced by the Tendulkar Committee (not the Planning Commission in 2009), uses a 365-day recall period for clothing, footwear, durable goods, education, and institutional medical expenses, while using a 7-day recall for edible oil, egg, fish, meat, vegetables, fruits, spices, beverages, refreshments, processed food, pan, tobacco, and intoxicants.
Consider the following statements regarding Inequality-adjusted poverty metrics:
1. The Sen Index of poverty, formulated in 1976, combines the headcount ratio and the poverty gap ratio with the variance of income among the poor to provide a distribution-sensitive measure of poverty.
2. The Kuznets Curve hypothesis suggests that as a nation's per capita income increases, the poverty gap ratio initially rises before declining, a trend observed in the Indian economy during the post-liberalization period of the 1990s.
3. The 2011 Socio-Economic and Caste Census data provides the primary framework for the Ministry of Rural Development to compute the national inequality-adjusted poverty headcount ratio for state-level fund allocation.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Sen Index incorporates the Gini coefficient of the poor, not the variance of income, to account for inequality. Statement 2 is incorrect as the Kuznets Curve hypothesis posits an inverted-U relationship between income inequality and economic growth, not the poverty gap ratio. Statement 3 is incorrect because the SECC 2011 data is used for identifying beneficiaries for welfare schemes rather than computing a national inequality-adjusted poverty headcount ratio for state-level fund allocation, which is typically determined by Finance Commission criteria.
Consider the following statements regarding Poverty line basket (PLB) composition and updates:
1. The Suresh Tendulkar Committee, constituted in 2005, shifted the focus of poverty estimation from calorie consumption to a uniform poverty line basket across rural and urban areas.
2. The Rangarajan Committee report submitted in 2014 recommended a monthly per capita expenditure of Rs 972 for rural areas and Rs 1,407 for urban areas to define the poverty line.
3. The D.T. Lakdawala methodology introduced the use of the Consumer Price Index for Urban Non-Manual Employees to adjust the poverty line for inflation in metropolitan regions starting from the 1997 fiscal year.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as the Tendulkar Committee (2005) moved away from calorie-based norms to a uniform basket covering expenditure on health and education. Statement 2 is correct because the Rangarajan Committee (2014) indeed recommended monthly per capita expenditures of Rs 972 for rural and Rs 1,407 for urban areas. Statement 3 is incorrect because the Lakdawala methodology used the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural areas and the Consumer Price Index for Industrial Workers (CPI-IW) for urban areas, rather than the CPI for Urban Non-Manual Employees.
Consider the following statements regarding Tendulkar Committee Mixed Reference Period (MRP) methodology:
1. The Tendulkar Committee methodology replaced the earlier calorie-based norm of 2400 kcal for rural areas and 2100 kcal for urban areas with a uniform national poverty line of 32 rupees per day for rural households.
2. The Lakdawala Committee preceded the Tendulkar Committee and utilized the Uniform Reference Period (URP) to measure poverty based on the 1973-74 price levels and state-specific consumer price indices.
3. The Modified Mixed Reference Period (MMRP) methodology, introduced by the Rangarajan Committee, utilizes a 7-day recall period for food items and a 365-day recall period for non-food items to calculate the poverty line.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because while the Tendulkar Committee shifted away from calorie norms, the poverty line was not a flat 32 rupees; it was set at Rs 27 per day for rural and Rs 33 for urban areas (at 2011-12 prices). Statement 2 is incorrect because the Lakdawala Committee used the Uniform Reference Period (URP) but based its poverty line on the 1973-74 poverty line updated using state-specific Consumer Price Index for Agricultural Labourers (CPI-AL) and Industrial Workers (CPI-IW), not merely 1973-74 price levels. Statement 3 is incorrect because the MMRP methodology, used by the NSSO, utilizes a 7-day recall for edible oil, egg, fish, meat, vegetables, fruits, spices, beverages, refreshments, processed food, pan, tobacco, and intoxicants, a 365-day recall for clothing, footwear, durables, education, and institutional medical expenses, and a 30-day recall for all other non-food items, rather than the simplified categorization mentioned.
Consider the following statements regarding Consumption surveys by National Sample Survey Office (NSSO):
1. The Lakdawala Committee report of 1993 introduced the use of state-specific poverty lines based on the Consumer Price Index for Agricultural Labourers and the Consumer Price Index for Industrial Workers.
2. The Tendulkar Committee, constituted in 2005, shifted the poverty estimation methodology from a calorie-based intake model to a uniform poverty line basket.
3. The 68th round of the National Sample Survey conducted in 2011-12 utilized the Mixed Modified Recall Period for estimating household consumption expenditure.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the Lakdawala Committee (1993) continued using the calorie-based approach and used state-specific poverty lines based on CPI-AL and CPI-IW, but it did not introduce them; these were already in use since the Alagh Committee. Statement 2 is correct as the Tendulkar Committee (2005) moved away from calorie-norm-based poverty lines to a Uniform Poverty Line Basket (UPLB) that included expenditure on health and education. Statement 3 is correct because the 68th round (2011-12) used the Modified Mixed Recall Period (MMRP), which collects data on low-frequency items over a 365-day period and high-frequency items over a 7-day or 30-day period to capture consumption patterns more accurately.
Consider the following statements regarding Inequality-adjusted poverty metrics:
1. The Lakdawala Committee methodology established in 1993 utilized the Consumer Price Index for Industrial Workers to adjust poverty lines, which accounted for intra-state inequality through decentralized data collection.
2. The Alkire-Foster method, adopted for the Global Multidimensional Poverty Index in 2010, utilizes a dual-cutoff approach to identify households as poor based on their deprivation in specific indicators.
3. The Multidimensional Poverty Index developed by NITI Aayog relies on the 75th round of the National Sample Survey Office data to calculate the intensity of deprivation across health, education, and standard of living.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as the Alkire-Foster method employs a dual-cutoff approach (deprivation cutoff and poverty cutoff) to identify multidimensional poverty. Statement 1 is incorrect because the Lakdawala Committee (1993) used the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural areas and CPI for Industrial Workers (CPI-IW) for urban areas, without specific mechanisms to account for intra-state inequality. Statement 3 is incorrect because NITI Aayog's National Multidimensional Poverty Index is primarily based on the National Family Health Survey (NFHS) data, not the NSSO 75th round.
Consider the following statements regarding Periodic Labour Force Survey (PLFS) data integration:
1. The PLFS annual report released for the period 2022-23 includes the consumption expenditure data previously captured by the Consumer Expenditure Survey, allowing for direct integration with the Tendulkar poverty line.
2. The Lakdawala Expert Group established in 1993 utilized state-specific poverty lines based on the Consumer Price Index for Industrial Workers (CPI-IW) and the Consumer Price Index for Agricultural Labourers (CPI-AL) to calculate national poverty averages.
3. The National Sample Survey Office transitioned to the PLFS framework in 2017, which incorporates the Usual Principal Status (UPS) and Current Weekly Status (CWS) as the primary metrics for rural poverty headcount ratios.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the PLFS focuses on labour force indicators and does not replace the Consumer Expenditure Survey (CES), which is a separate periodic exercise. Statement 2 is incorrect as the Lakdawala Committee (1993) used the CPI-IW for urban areas and CPI-AL for rural areas to update poverty lines, but it did not calculate national poverty averages through these indices directly; it relied on NSS consumption data. Statement 3 is incorrect because the PLFS is designed to measure employment and unemployment metrics, not poverty headcount ratios, and the transition to the PLFS framework in 2017 did not change the methodology for calculating rural poverty.
Consider the following statements regarding Consumer Price Index for Agricultural Labourers (CPI-AL) usage:
1. The CPI-AL basket includes 260 items across different states, reflecting the consumption patterns of rural households primarily dependent on agricultural wages.
2. The base year for the current series of the Consumer Price Index for Agricultural Labourers is 1986-87.
3. The Alagh Committee, constituted in 1979, recommended the use of CPI-AL for updating the poverty line for the rural population.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the CPI-AL basket is specifically designed to reflect the consumption pattern of rural agricultural labour households, comprising approximately 260 items across states. Statement 2 is correct because the current series of CPI-AL, compiled by the Labour Bureau, continues to use 1986-87 as its base year. Statement 3 is correct as the 1979 Alagh Committee was the first to define the poverty line based on nutritional requirements and recommended using CPI-AL to adjust these lines for inflation in rural areas.
Consider the following statements regarding Purchasing Power Parity (PPP) in international poverty comparisons:
1. The World Bank currently defines the international poverty line at $2.15 per person per day, based on 2017 Purchasing Power Parity (PPP) prices.
2. The 2017 ICP cycle involved 176 participating economies, providing the data necessary to adjust poverty lines for differences in the cost of living across countries.
3. Purchasing Power Parity (PPP) rates are calculated by the International Comparison Program (ICP), which is managed by the World Bank.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the World Bank updated the extreme poverty line to $2.15 in 2022 using 2017 PPP prices to reflect the cost of basic needs. Statement 2 is accurate because the 2017 International Comparison Program (ICP) cycle was the largest global statistical initiative to date, covering 176 economies to facilitate cross-country price comparisons. Statement 3 is correct as the ICP is a global statistical initiative managed by the World Bank that produces PPP estimates to enable the comparison of economic performance and poverty levels across nations.
Consider the following statements regarding Global MPI vs National MPI methodological divergence:
1. The UNDP Global MPI report calculates poverty incidence by aggregating individual deprivation scores, applying a uniform weight of 1/10 to each of the indicators across all three dimensions.
2. The National MPI framework includes a specific indicator for bank account ownership, which was introduced in the 2015 baseline report to align with the Pradhan Mantri Jan Dhan Yojana.
3. In the National MPI structure, the nutrition indicator is measured using Body Mass Index data for adults, a methodology that mirrors the Global MPI approach adopted in the 2021 update.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Global MPI uses a nested weighting system where each of the three dimensions (Health, Education, Standard of Living) is weighted 1/3, and indicators within them are weighted equally, not a uniform 1/10 for all. Statement 2 is incorrect because the National MPI, developed by NITI Aayog, does not include bank account ownership as a standalone indicator, as it focuses on multidimensional poverty rather than financial inclusion metrics. Statement 3 is incorrect because while the Global MPI uses BMI for adults, the National MPI (as per the NFHS-based methodology) measures nutrition primarily through the weight-for-age indicator for children aged 0-59 months, not adult BMI.
Consider the following statements regarding Consumer Price Index for Agricultural Labourers (CPI-AL) usage:
1. The Labour Bureau under the Ministry of Labour and Employment compiles the Consumer Price Index for Agricultural Labourers (CPI-AL) on a monthly basis.
2. The Lakdawala Committee report of 1993 suggested using the CPI-AL for rural poverty estimation and established the 1990-91 base year for calculating the index.
3. The Tendulkar Committee methodology adopted the CPI-AL as the primary deflator for urban poverty lines and transitioned the base year to 2004-05 for national consistency.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the Labour Bureau, Ministry of Labour and Employment, has been compiling CPI-AL monthly since 1961. Statement 2 is incorrect because while the Lakdawala Committee (1993) recommended using CPI-AL for rural poverty, it utilized the 1986-87 base year, not 1990-91. Statement 3 is incorrect because the Tendulkar Committee used CPI-AL only for rural poverty lines, while for urban poverty lines, it utilized the Consumer Price Index for Industrial Workers (CPI-IW).
Consider the following statements regarding Lakdawala Committee state-specific poverty lines:
1. The Planning Commission adopted the Lakdawala Committee recommendations in 1997, which remained the official basis for poverty estimation until the Tendulkar Committee report was introduced.
2. The 1993 Lakdawala report suggested that the poverty line should be updated annually using the Wholesale Price Index to better reflect the cost of living for urban households.
3. The Lakdawala Committee recommended that the central government allocate food subsidies to states based on the absolute number of poor individuals identified through the 1991 Census data.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct because the Planning Commission officially adopted the Lakdawala Committee's methodology in 1997, which used state-specific poverty lines based on 1973-74 price levels until the Tendulkar Committee replaced it in 2009. Statement 2 is incorrect because the committee recommended using the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural areas and the Consumer Price Index for Industrial Workers (CPI-IW) for urban areas, not the Wholesale Price Index. Statement 3 is incorrect because the committee recommended using the National Sample Survey (NSS) consumption expenditure data rather than the 1991 Census data to estimate the number of poor individuals.
Consider the following statements regarding Consumption expenditure vs Income-based poverty estimation:
1. The Rangarajan Committee report submitted in 2014 estimated the poverty line at a monthly per capita expenditure of Rs 972 in rural areas and Rs 1,407 in urban areas.
2. The Lakdawala Committee methodology, operationalized in 1993, utilized state-specific poverty lines based on the Consumer Price Index for Agricultural Labourers and the Consumer Price Index for Industrial Workers.
3. The 2012 Planning Commission poverty estimates, based on the Tendulkar methodology, utilized the Consumer Price Index for Rural Labourers to adjust for inflation across all states regardless of their urbanization levels.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as the Rangarajan Committee (2014) recommended poverty lines of Rs 972 and Rs 1,407 for rural and urban areas respectively. Statement 2 is correct because the Lakdawala Committee utilized state-specific poverty lines adjusted using CPI-AL for rural and CPI-IW for urban areas. Statement 3 is incorrect because the Tendulkar methodology shifted away from state-specific price indices and instead used a uniform national poverty line, adjusting for inflation using the Consumer Price Index for Industrial Workers (CPI-IW) rather than CPI-RL.
Consider the following statements regarding Calorie intake vs Nutritional outcome debates:
1. The 68th round of the National Sample Survey Office (NSSO) data on consumer expenditure served as the primary empirical basis for the 2014 Rangarajan Committee to calculate poverty using the Multi-Dimensional Poverty Index framework.
2. The Dandekar and Rath methodology of 1971 utilized the National Sample Survey data to conclude that a minimum expenditure of Rs 15 per capita per month in rural areas was sufficient to meet the 2,250 calorie intake target.
3. The Planning Commission Task Force of 2015 recommended replacing the calorie-based methodology with the Socio-Economic Caste Census data to determine the eligibility of households for the Public Distribution System.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Rangarajan Committee (2014) did not use the Multi-Dimensional Poverty Index (MPI) framework, but rather continued the consumption-expenditure based poverty line approach. Statement 2 is incorrect because the Dandekar and Rath methodology (1971) set the rural poverty line at Rs 15 per capita per month, but the corresponding calorie target was 2,250 calories for both rural and urban areas, whereas the urban target was actually 2,100 calories. Statement 3 is incorrect because the 2015 Planning Commission Task Force (Panagariya Task Force) was focused on the elimination of poverty and did not recommend replacing calorie-based methodology with Socio-Economic Caste Census (SECC) data for PDS eligibility; rather, the National Food Security Act (2013) had already shifted the focus toward SECC-based identification.
Consider the following statements regarding Periodic Labour Force Survey (PLFS) data integration:
1. The Suresh Tendulkar methodology for poverty estimation was officially replaced by the C. Rangarajan Committee recommendations in 2015, which shifted the focus to a multidimensional deprivation index for rural and urban households.
2. Data from the PLFS is currently utilized to derive the Labour Force Participation Rate (LFPR) and the Worker Population Ratio (WPR) at both national and state levels for quarterly urban estimates.
3. The NITI Aayog's National Multidimensional Poverty Index is computed using the Alkire-Foster methodology, which aggregates deprivation across health, education, and standard of living dimensions.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the Tendulkar Committee methodology has not been officially replaced by the Rangarajan Committee recommendations, and India continues to lack a formal, legally adopted poverty line post-Tendulkar. Statement 2 is correct as the PLFS, launched by the NSO in 2017, provides quarterly employment data for urban areas and annual data for both rural and urban areas, specifically tracking LFPR and WPR. Statement 3 is correct because NITI Aayog's National Multidimensional Poverty Index (MPI) utilizes the internationally recognized Alkire-Foster method to measure deprivation across 12 indicators spanning health, education, and standard of living.
Consider the following statements regarding NITI Aayog National MPI computation framework:
1. The National Multidimensional Poverty Index is computed by NITI Aayog using the Alkire-Foster methodology which identifies poverty across three equally weighted dimensions.
2. The National MPI framework utilizes data from the National Family Health Survey (NFHS) to measure deprivations across 12 indicators of health, education, and standard of living.
3. The 2023 National MPI report indicates that 13.5 crore people moved out of multidimensional poverty between 2015-16 and 2019-21.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the National MPI employs the globally recognized Alkire-Foster methodology, which aggregates deprivations across three equally weighted dimensions: Health, Education, and Standard of Living. Statement 2 is correct because the framework utilizes the National Family Health Survey (NFHS) data to track 12 specific indicators, including nutrition, child mortality, and sanitation. Statement 3 is correct, as the 2023 NITI Aayog report confirmed that 13.5 crore Indians transitioned out of multidimensional poverty during the 2015-16 to 2019-21 reference period.
Consider the following statements regarding Squared Poverty Gap and Sen Index applications:
1. The Alkire-Foster method, utilized in the Global Multidimensional Poverty Index, identifies poverty based on the dual-cutoff approach involving deprivation dimensions and their intensity.
2. The Lakdawala Committee report of 1993 proposed the use of state-specific poverty lines based on the Consumer Price Index for Agricultural Labourers and the Consumer Price Index for Industrial Workers.
3. The Rangarajan Committee, constituted in 2012, recommended a monthly per capita consumption expenditure of ₹972 for rural areas and ₹1,407 for urban areas.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the Alkire-Foster method uses a dual-cutoff approach to identify who is poor and the intensity of their deprivation. Statement 3 is correct because the 2012 Rangarajan Committee indeed set the monthly per capita consumption expenditure thresholds at ₹972 for rural and ₹1,407 for urban areas. Statement 2 is incorrect because the Lakdawala Committee (1993) recommended using the Consumer Price Index for Agricultural Labourers (CPI-AL) for rural areas and the Consumer Price Index for Industrial Workers (CPI-IW) for urban areas, but it did not propose state-specific poverty lines based on these indices; rather, it used state-specific poverty lines based on the 1973-74 national poverty line adjusted for state-level price differentials.
Consider the following statements regarding Inequality-adjusted poverty metrics:
1. The Tendulkar Committee report of 2009 introduced the concept of the Gini coefficient to adjust the national poverty line for regional price variations across rural and urban sectors.
2. The World Bank's 'Poverty and Shared Prosperity' report uses the Atkinson Index to measure inequality, which assigns a higher weight to the income gains of the bottom 40 percent of the population.
3. The Rangarajan Committee recommendations of 2014 incorporated the Human Development Index values directly into the calculation of the monthly per capita consumption expenditure for poverty estimation.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Tendulkar Committee moved away from calorie-based norms to a uniform poverty line basket but did not use the Gini coefficient for regional price adjustments. Statement 2 is incorrect as the World Bank’s 'Shared Prosperity' indicator measures the growth rate of the mean income of the bottom 40 percent, whereas the Atkinson Index is a welfare-based measure of inequality that accounts for societal aversion to inequality. Statement 3 is incorrect because the Rangarajan Committee, while raising the poverty line, continued to use Monthly Per Capita Consumption Expenditure (MPCE) based on household surveys rather than integrating Human Development Index (HDI) values into its calculation.
Consider the following statements regarding Purchasing Power Parity (PPP) in international poverty comparisons:
1. The 2017 PPP update resulted in higher poverty lines for lower-middle-income and upper-middle-income countries to better reflect the cost of basic goods in those economies.
2. The World Bank uses the 'Geary-Khamis' method or similar multilateral aggregation techniques to derive PPP exchange rates that equate the purchasing power of different currencies.
3. The International Comparison Program (ICP) was established in 1968 as a joint venture between the United Nations and the University of Pennsylvania.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct because the 2017 PPP update adjusted poverty lines to $3.65 for lower-middle-income and $6.85 for upper-middle-income countries to account for the actual cost of living in those specific economic tiers. Statement 2 is correct as the World Bank utilizes the International Comparison Program's multilateral aggregation techniques, such as the Geary-Khamis method, to calculate conversion factors that reflect the relative purchasing power of currencies. Statement 3 is correct because the ICP was indeed launched in 1968 as a collaborative initiative between the UN Statistical Division and the University of Pennsylvania to facilitate global price and expenditure comparisons.
Consider the following statements regarding Headcount Ratio (HCR) and Poverty Gap Index:
1. The Rangarajan Committee report of 2014 recommended a monthly per capita expenditure of 972 rupees for rural areas and 1407 rupees for urban areas to determine the poverty status of households.
2. The Poverty Gap Index is often used alongside the Gini coefficient to assess income inequality, providing a comprehensive view of wealth distribution within the bottom decile of the population.
3. The Sen Index of poverty combines the Headcount Ratio and the Poverty Gap Index to provide a measure that is sensitive to the distribution of income among the poor, incorporating the Gini coefficient of the poor population.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Rangarajan Committee (2014) recommended higher thresholds of ₹972 for rural and ₹1,407 for urban areas per month, but these figures were specifically for per capita expenditure, not households. Statement 2 is incorrect because the Poverty Gap Index measures the depth of poverty by calculating the average shortfall of the poor from the poverty line, whereas the Gini coefficient measures overall income inequality across the entire population, not just the bottom decile. Statement 3 is incorrect because, while the Sen Index does combine the Headcount Ratio and Poverty Gap Index, it incorporates the Gini coefficient of the poor population to account for inequality among them, but the statement is misleading as it implies these metrics are used for wealth distribution assessment rather than poverty intensity.
Consider the following statements regarding Squared Poverty Gap and Sen Index applications:
1. The Planning Commission adopted the Alagh Committee recommendations in 1979, which established the first official poverty line based on a daily intake of 2,400 calories for rural areas and 2,100 calories for urban areas.
2. The NITI Aayog's National Multidimensional Poverty Index utilizes the 2011-12 National Sample Survey data to track progress across the twelve indicators of health, education, and standard of living.
3. The Squared Poverty Gap index is mathematically equivalent to the Foster-Greer-Thorbecke index when the sensitivity parameter alpha is set to a value of two.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct because the Foster-Greer-Thorbecke (FGT) index uses a parameter 'alpha' where alpha=0 measures headcount ratio, alpha=1 measures poverty gap, and alpha=2 measures the squared poverty gap. Statement 1 is incorrect because while the Alagh Committee (1979) did set these calorie norms, the first official poverty line estimates were actually derived from the 1962 Working Group of the Planning Commission. Statement 2 is incorrect because the NITI Aayog's National Multidimensional Poverty Index is based on the National Family Health Survey (NFHS) data, not the National Sample Survey (NSS) data.