Why is the Human Development Index considered a broader welfare indicator than GDP?
Answer and explanation
Correct answer: It includes health and education along with income
GDP primarily summarizes the monetary value of production, whereas the Human Development Index combines income-related achievement with important human outcomes, especially health and education. Life expectancy reflects the health dimension and schooling measures reflect educational access or attainment. Thus HDI gives a broader, multidimensional view of human welfare. It is not perfect, however, and it does not remove or fully capture every inequality or environmental concern.
Frequently asked questions
What is the correct answer to this question?
It includes health and education along with income
Why is this the correct answer?
GDP primarily summarizes the monetary value of production, whereas the Human Development Index combines income-related achievement with important human outcomes, especially health and education. Life expectancy reflects the health dimension and schooling measures reflect educational access or attainment. Thus HDI gives a broader, multidimensional view of human welfare. It is not perfect, however, and it does not remove or fully capture every inequality or environmental concern.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
