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Difficulty: EasyIndicators and Measurement of Economic Development

Which of the following economic metrics is a composite indicator of economic development that integrates life expectancy, education, and per capita income?

  1. A
    Gross Domestic Product
  2. Human Development IndexAnswer
  3. C
    Per Capita Income
  4. D
    Gross National Product

Answer

Human Development Index
The Human Development Index is a composite indicator introduced by the United Nations Development Programme (UNDP) to measure economic development across three basic dimensions: a long and healthy life (life expectancy), knowledge (education), and a decent standard of living (GNI per capita).

Step-by-Step Solution

1
Identify the distinction between single quantitative growth indicators and composite qualitative development indicators.
Metrics like Gross Domestic Product, Gross National Product, and Per Capita Income reflect monetary output or average monetary income, whereas development encompasses broader quality-of-life improvements.
Economic development requires multidimensional evaluation beyond purely national accounting totals.
2
Evaluate the components of the Human Development Index (HDI).
HDI explicitly combines indicators of health (life expectancy at birth), knowledge/education (mean and expected years of schooling), and standard of living (GNI per capita).
HDI was designed specifically to provide a composite index measuring qualitative socioeconomic progress.

Key Concept

Human Development Index as a Composite Development Indicator
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Topics

Indicators and Measurement of Economic Development