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Consider the following statements about the Monthly Per Capita Expenditure (MPCE).
1. This mechanism is helpful in identifying the poor as a group to be taken care of by the government, but it would be difficult to identify who among the poor need help the most
2. It groups all the poor together and does not differentiate between the very poor and the other poor
Which of the statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements about the Monthly Per Capita Expend...
  • There are many ways of measuring poverty. One way is to determine it by the monetary value (per capita expenditure) of the minimum calorie intake that was estimated at 2,400 calories for a rural person and 2,100 for a person in the urban area. Based on this, in 2011-12, the poverty line was defined for rural areas as consumption worth Rs 816 per person a month and for urban areas it was Rs 1,000.
  • Though the government uses Monthly Per Capita Expenditure (MPCE) as a proxy for income of households to identify the poor. State that a major problem with this mechanism is that it groups all the poor together and does not differentiate between the very poor and the other poor.
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Consider the following statements about the Monthly Per Capita Expend...
Explanation:

The Monthly Per Capita Expenditure (MPCE) is a mechanism that is often used to identify the poor as a group that needs to be taken care of by the government. However, there are certain limitations to this mechanism that need to be considered.

Statement 1: This mechanism is helpful in identifying the poor as a group to be taken care of by the government, but it would be difficult to identify who among the poor need help the most.

The first statement is correct. The MPCE is a useful tool in identifying the poor population as a whole. It calculates the average expenditure per person in a household over a specific period of time. This average is then used to determine the poverty line and classify individuals or households as poor or non-poor. However, it does not provide any information about the specific needs or vulnerabilities of individuals within the poor population. Therefore, it would be difficult to identify who among the poor need help the most based solely on MPCE.

Statement 2: It groups all the poor together and does not differentiate between the very poor and the other poor.

The second statement is also correct. The MPCE does not differentiate between different levels of poverty within the poor population. It treats all individuals or households below the poverty line as poor, regardless of their level of deprivation. This lack of differentiation can be problematic as it fails to capture the severity of poverty and the specific needs of the most vulnerable individuals. It also does not take into account other indicators of poverty such as access to basic services, education, health, etc.

Conclusion:

Both statements are correct. While the MPCE is a valuable tool for identifying the poor as a group, it has limitations in terms of identifying the most needy individuals within the poor population and differentiating between different levels of poverty. Therefore, additional measures and indicators are required to effectively target and address the needs of the poor.
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Consider the following statements about the Monthly Per Capita Expenditure (MPCE).1. This mechanism is helpful in identifying the poor as a group to be taken care of by the government, but it would be difficult to identify who among the poor need help the most2. It groups all the poor together and does not differentiate between the very poor and the other poorWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'C'. Can you explain this answer?
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