2024 A/L Economics – Past Paper MCQ 43

Sanath Withanage

Question:

Which factor is most likely to cause an improvement in a country’s Human Development Index despite a stagnation in economic growth?
(1) Increased life expectancy
(2) Decreased income inequality
(3) Growth in the informal economy
(4) Reduction in child mortality rate
(5) Increased access to clean drinking water

Correct Answer:

(1)

Answer Explanation:

The Human Development Index (HDI) is a composite index measuring three dimensions: standard of living (GNI per capita), knowledge (education), and long/healthy life. Because Life Expectancy at Birth is a direct mathematical component of the HDI formula, an increase in it will directly raise the HDI score even if income (economic growth) stagnates.


Topic: Economic Development Year: 2024

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