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O Levels Economics (2281)•2281/12/O/N/23
Question 24 from 2281/12/O/N/23

Explanation

HDI Components Exclude Inequality

Steps:

  • Recall HDI formula: average of indices for health, education, and income.
  • Identify health dimension: uses life expectancy at birth.
  • Identify education dimension: combines mean and expected years of schooling.
  • Identify income dimension: uses gross national income per capita.

Why A is correct:

  • HDI calculation, per UNDP definition, measures life expectancy, education, and GNI per capita without adjusting for inequality; inequality is addressed separately in the Inequality-adjusted HDI (IHDI).

Why the others are wrong:

  • B: Life expectancy forms the health index in HDI.
  • C: Gross national income per capita measures the standard of living index in HDI.
  • D: Years of schooling contributes to the education index in HDI.

Final answer: A

Topic: Living standards

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