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Measuring Development · Paper 1 — Free Economics HL Practice Questions
1FoundationSAQ-SHuman Development Index (HDI) and other development indicators5 marksPaper 1~8 min
Data
- Life expectancy index: 0.820
- Education index: 0.650
- Income index (GNI per capita index): 0.710
The Human Development Index (HDI) is calculated as the geometric mean of three dimension indices.
A country has the following
(a)
State what a composite indicator is. [1 mark]
(b)
Calculate the HDI value for this country. [2 marks]
(c)
Explain one advantage of using a composite indicator like the HDI over using GNI per capita alone to measure development. [2 marks]
Solutions
2FoundationSAQ-SHuman Development Index (HDI) and other development indicators5 marksPaper 1~8 min
The Human Development Index (HDI) is a composite index used to measure development. It is calculated as the geometric mean of three normalised sub-indices. The table below shows data for Country X in 2022.
Sub-index — Value
Health index — 0.810
Education index — 0.650
Income index — 0.740
(a)
State three dimensions measured by the HDI. [1 mark]
(b)
Calculate the HDI value for Country X. [2 marks]
(c)
Explain one limitation of using the HDI as a measure of development. [2 marks]