O Levels Economics (2281)•2281/11/M/J/23

Explanation
Comparing HDI and Real GDP Components
Steps:
- Define HDI: Combines life expectancy, education (mean and expected years of schooling), and GNI per capita.
- Define real GDP: Measures total value of goods and services produced, adjusted for inflation, focusing on economic output.
- Evaluate choices: Check which accurately describes unique inclusions in HDI versus real GDP.
- Identify correct statement: A matches HDI's non-economic dimensions absent in GDP.
Why A is correct:
- HDI explicitly incorporates health (life expectancy) and education (years of schooling) indices, while real GDP only captures economic production without social welfare metrics.
Why the others are wrong:
- B: Real GDP directly measures output level; HDI includes output indirectly via GNI per capita.
- C: Neither HDI nor real GDP includes unemployment; that's measured by labor statistics.
- D: Real GDP includes net exports (exports minus imports); HDI does not.
Final answer: A
Topic: Living standards
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