mMCQ.

Navigation Menu

Step into mMCQ.

Launch mMCQ. diagnostic

Explore mMCQ.

MDCAT prepFree DiagnosticPricing & SubscribeSign in

Resources

Terms & Conditions

mMCQ.

© 2021 - 2025 mMCQ.All rights reserved.

WhatsApp
O Levels Economics (2281)•2281/11/M/J/23
Question 24 from 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

Practice more O Levels Economics (2281) questions on mMCQ.me