O Levels Economics (2281)•2281/13/O/N/20

Explanation
HDI measures human development via three core dimensions
Steps:
- Recall HDI definition: United Nations index combining health, education, and living standards.
- Identify components: Life expectancy for health; education via schooling years; income via GNI per capita.
- Compare choices: A, B, D match components; C (savings) does not appear in formula.
- Confirm exclusion: HDI formula omits personal savings, focusing on broader income metrics.
Why C is correct:
- HDI formula uses gross national income (GNI) per capita for standard of living, not individual or national savings levels, per UN methodology.
Why the others are wrong:
- A: Education index includes mean and expected years of schooling.
- B: Income level is captured by GNI per capita in logarithmic scale.
- D: Life expectancy at birth forms the health dimension.
Final answer: C
Topic: Living standards
Practice more O Levels Economics (2281) questions on mMCQ.me