O Levels Economics (2281)•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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