The correct option is (a).
Explanation
The Global Multidimensional Poverty Index (MPI) is an international measure of acute multidimensional poverty covering over 100 developing countries. It complements traditional income-based poverty measures by capturing the simultaneous deprivations that each person faces across three dimensions: Health, Education, and Standard of Living.
Statement-wise Analysis:
- Statement 1 is Correct: The MPI assesses poverty at the individual and household level. It tracks deprivation across three dimensions using ten indicators:
- Education: Years of schooling and school attendance.
- Health: Nutrition and child mortality.
- Standard of Living: Cooking fuel, sanitation, drinking water, electricity, housing, and assets.
- Statement 2 is Incorrect: Purchasing Power Parity (PPP) is a metric used to compare currencies and economic productivity between countries, often associated with income-based poverty lines (e.g., $2.15 a day). The MPI focuses on non-monetary deprivations rather than national-level income or purchasing power aggregates.
- Statement 3 is Incorrect: Budget deficits and GDP growth rates are macroeconomic indicators used to measure a nation's fiscal health and economic performance. They are not components of the MPI, which is strictly a measure of human deprivation at the micro-level.
Key Takeaway:
The Multidimensional Poverty Index (MPI) measures acute poverty based on household-level deprivations in health, education, and living standards, distinct from income-based or macroeconomic indicators like GDP or PPP.