Question

Choose the correct sequence of indices for understanding the economic development of human beings over time:
• [A.] Multidimensional Human Development Index
• [B.] Per Capita Income
• [C.] Purchasing Power Parity
• [D.] Human Poverty Index Choose the correct answer from the options given below:

• A. D, A, B and C
• B. B, C, D and A
• C. A, B, C and D
• D. C, D, A and B

Hint:

Evolution of development indicators: \[ \boxed{ \text{PCI} \rightarrow \text{PPP} \rightarrow \text{HPI} \rightarrow \text{MPI/MHDI} } \] Modern measures consider education, health and living standards in addition to income.

Answer 1

The Correct Option is B

Concept: The measurement of economic development has evolved over time. Initially, development was measured only by income. Later, economists recognised that living standards, poverty and multidimensional deprivation also need to be considered.

Step 1: Arrange the evolution of development indicators. The chronological evolution is:
• Per Capita Income (PCI) -- earliest indicator based on income.
• Purchasing Power Parity (PPP) -- adjusts income for purchasing power.
• Human Poverty Index (HPI) -- introduced by UNDP to measure deprivation.
• Multidimensional Human Development Index (MHDI/MPI) -- measures multiple dimensions of deprivation and well-being. Thus, \[ \boxed{ B \rightarrow C \rightarrow D \rightarrow A } \] Hence, \[ \boxed{\text{Correct Answer}=(B)} \]