HDI Components Beyond GDP per Capita

Steps:

• Recall HDI formula: Combines income (GNI per capita), health (life expectancy), and education (mean and expected years of schooling).
• Identify question focus: Components added to GDP per head (income proxy).
• Match choices to HDI: Life expectancy and schooling align with health and education dimensions.
• Eliminate unrelated economic or demographic factors.

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: Earnings relate to income but inequalities are in separate indices like IHDI.
• C: Balance of payments and trade are macroeconomic indicators, not in HDI.
• D: Population size and age structure are demographic data, excluded from HDI.

Final answer: B