economics hard True/False

The National Multidimensional Poverty Index (MPI) published by NITI Aayog uses the 'Alkire-Foster' methodology, which identifies a household as poor only if it is deprived in 100% of the weighted indicators across health, education, and standard of living.

  1. True
  2. False

Answer: False

The Alkire-Foster methodology does not require 100% deprivation. Instead, it assigns weights to various indicators and calculates a deprivation score. A household is classified as 'multidimensionally poor' if its weighted deprivation score crosses a specific threshold (usually 33.33%). This allows the index to capture the intensity and breadth of poverty simultaneously.

Topic Indian Economy - Poverty
Exam Relevance UPSC Prelims, SSC CGL
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