HDI Components Beyond GDP per Capita

Steps:

• Recall HDI formula: Combines health, education, and standard of living metrics.
• Identify health component: Life expectancy at birth.
• Identify education component: Mean and expected years of schooling.
• Confirm standard of living: GNI per capita (proxy for GDP per head).

Why B is correct:

• HDI, per UNDP definition, includes life expectancy at birth (health) and expected years of schooling (education) alongside GNI per capita.

Why the others are wrong:

• A: Average earnings relate to income inequality (Gini coefficient), not HDI; inequalities excluded.
• C: Balance of payments and trade are macroeconomic indicators, unrelated to HDI's human-focused metrics.
• D: Population size and age structure influence demographics, but HDI uses per capita measures without them.

Final answer: B