Which set of factors is used to construct the HDI?

Which set of factors is used to construct the HDI?

• A. GDP, Inflation, Unemployment, and Trade
• B. Population, Urbanization, Literacy, and Health
• C. Military spending, Inflation, Tax revenue, Literacy
• D. Income, Literacy, Education, and Life Expectancy

Answer: (D)

The key idea is that the HDI measures human development through three broad areas: health, education, and standard of living. Health is captured by life expectancy at birth, education by indicators of schooling, and standard of living by income per capita (often expressed as GNI per capita). So a set that includes Life Expectancy, Education, and Income aligns with those three dimensions. The option that includes Income, Life Expectancy, Education, and Literacy best matches this structure. It combines health (Life Expectancy), education (Education), and standard of living (Income). The other choices bring in indicators not used in the HDI, such as inflation, unemployment, population factors, military spending, or other less central measures.

The key idea is that the HDI measures human development through three broad areas: health, education, and standard of living. Health is captured by life expectancy at birth, education by indicators of schooling, and standard of living by income per capita (often expressed as GNI per capita). So a set that includes Life Expectancy, Education, and Income aligns with those three dimensions.

The option that includes Income, Life Expectancy, Education, and Literacy best matches this structure. It combines health (Life Expectancy), education (Education), and standard of living (Income). The other choices bring in indicators not used in the HDI, such as inflation, unemployment, population factors, military spending, or other less central measures.