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Indian EconomyMediumAsked in: CDS · CDS-I 2023, GK

Which one of the following indicators is included in the National Multidimensional Poverty Index (MPI)?

  1. A.Years of schooling
  2. B.Literacy rate
  3. C.Life expectancy
  4. D.Per capita income

Correct answer

A. Years of schooling

Explanation

The correct answer is A, Years of schooling. It is one of the two education indicators in NITI Aayog's National Multidimensional Poverty Index.

The national MPI measures deprivation, not income, across three equally weighted dimensions: health, education and standard of living. Health covers nutrition, child and adolescent mortality and maternal health. Education covers years of schooling and school attendance. Standard of living covers cooking fuel, sanitation, drinking water, electricity, housing, assets and bank account. India's index follows the global MPI of UNDP and the Oxford Poverty and Human Development Initiative, and adds maternal health and bank account. A household deprived in a third or more of the weighted indicators is counted as multidimensionally poor.

B is wrong because literacy rate is not an MPI indicator; education is measured through schooling years and attendance. C is wrong because life expectancy is a Human Development Index indicator, not an MPI one. D is wrong because the MPI deliberately leaves out income; per capita income belongs to the HDI.

Exam tip: MPI = health, education, living standard (no income); HDI = life expectancy, schooling, per capita income.

Practice Questions

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Q2.Indian EconomyAsked in: CDS · CDS-I 2020, GKMedium

Which of the following are considered to be the four pillars of human development?

  1. A.Equity, inclusion, productivity and empowerment
  2. B.Equity, productivity, empowerment and sustainability
  3. C.Productivity, gender, inclusion and equity
  4. D.Labour, productivity, inclusion and equity
Show answer
Correct answer: B. Equity, productivity, empowerment and sustainability

These are the four pillars of human development set out by the economist Mahbub ul Haq, who led the team that prepared the first Human Development Report for the UNDP in 1990, working closely with Amartya Sen.

Q3.Indian EconomyAsked in: CDS · CDS-I 2024, GKMedium

Which of the following statements is/are correct?

1. A price index captures the change in the average price of a constant basket of commodities.

2. If the price index takes values 100, 110 and 121 in three consecutive years respectively, then the inflation rates in the 2nd and 3rd years are 10% and 21% respectively.

Select the correct answer using the code given below.

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: A. 1 only

Statement 1 defines a price index correctly, but statement 2 gets the third year's inflation wrong. A price index such as the Consumer Price Index tracks the cost of a fixed basket of goods and services over time, compared with a base year whose value is set at 100.

Q4.Indian EconomyAsked in: CDS · CDS-I 2021, GKEasy

Which of the following is/are social security scheme(s) ?

1. Atal Pension Yojana

2. Pradhan Mantri Jeevan Jyoti Bima Yojana

3. Pradhan Mantri Suraksha Bima Yojana

Select the correct answer using the code given below :

  1. A.1 only
  2. B.2 and 3 only
  3. C.1, 2 and 3
  4. D.1 and 3 only
Show answer
Correct answer: C. 1, 2 and 3

All three are social security schemes, launched together by the Government of India on 9 May 2015 to give pension and insurance cover to ordinary people, especially in the unorganised sector.

Q5.Indian EconomyAsked in: CDS · CDS-I 2024, GKHard

Which of the following statements is/are correct?

1. GDP deflator captures the average price of an unchanging basket of commodities that constitutes the GDP of the country.

2. GDP deflator can be used to measure the real GDP of the economy but not the inflation rate.

Select the correct answer using the code given below.

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: D. Neither 1 nor 2

Both statements misdescribe the GDP deflator. The deflator is the ratio of nominal GDP to real GDP, multiplied by 100.