HDI Captures Broader Human Well-Being Beyond Economic Output

Steps:

• Recall that GDP per head measures only economic production per person, ignoring non-economic factors like quality of life.
• Identify HDI as a composite index developed by the UN, combining income, health, and education.
• Compare components: HDI uses life expectancy for health and mean years of schooling plus expected years for education, plus GNI per capita.
• Eliminate options that don't fully match HDI's multidimensional approach.

Why C is correct:

• HDI's formula integrates health (life expectancy at birth) and education (literacy and enrollment rates) alongside income, providing a holistic view of living standards per UN definition.

Why the others are wrong:

• A: Changes in output relate to GDP growth, not HDI's focus.
• B: HDI includes health but also education, making this incomplete.
• D: Inflation adjustment is in real GDP, not a unique HDI feature.

Final answer: C