Question:
An economy’s GNI per capita based on PPP has increased, but its Human Development Index has remained unchanged. What could explain the difference?
(1) Increase in expected years of schooling
(2) A decline in the life expectancy at birth
(3) A decrease in adult literacy rate
(4) An increase in inflation
(5) An increase in population growth
Correct Answer:
(2)
Answer Explanation:
The Human Development Index (HDI) is an average of three indices: GNI per capita, Education (years of schooling), and Health (Life Expectancy). If GNI increases but the overall HDI stays flat, one of the other two indicators must have decreased to cancel out the gains. A decline in life expectancy perfectly explains this.
Topic: Economic Development Year: 2017
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