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Question

Which among the following indicator is not used for the construction of the Human Development Index ?

The correct answer is
Percentage of population below poverty line

Understanding the Human Development Index (HDI)

The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development. These dimensions are:

  • A long and healthy life
  • Access to knowledge
  • A decent standard of living

HDI Indicators Analysis

The HDI is constructed using specific indicators for each dimension:

  • Health: Measured by Life expectancy at birth.
  • Education: Measured by Mean years of schooling (for adults aged 25 years and expected years of schooling (for children entering school age). Adult literacy rate is related but not a direct component.
  • Standard of Living: Measured by Gross National Income (GNI) per capita (Purchasing Power Parity in US dollars). GDP per capita is similar but distinct.

Evaluating the Options

Let's examine the given options based on the standard HDI components:

  • Option 1: Expectation of life at birth - This is a core indicator for the health dimension.
  • Option 2: Adult literacy rate - While related to education, the HDI uses specific schooling years metrics, not adult literacy rate directly.
  • Option 3: G.D.P. per capita (PPP Per capita US $) - The HDI uses GNI per capita, which is closely related to GDP per capita. Both reflect the standard of living.
  • Option 4: Percentage of population below poverty line - This indicator measures poverty and income distribution, which is not directly included in the HDI's three core dimensions (health, education, standard of living).

Conclusion on HDI Indicator

The indicator that is explicitly not used in the construction of the Human Development Index is the Percentage of population below poverty line. While adult literacy rate and GDP per capita are not the exact metrics used (which are schooling years and GNI per capita, respectively), they are conceptually closer to the HDI dimensions than poverty rate, which measures a different aspect of well-being.

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Important Questions from Human Development Indices and Concepts

  1. The number of deaths during the first 28 completed days of life per 1000 live births in a given year or period is defined as ______. 

  2. Which of the following is a characteristic of human wants in terms of economics?

  3. The problem of choice between relatively scarce commodities due to limited productive resources with the society can be illustrated with the help of a _______.

  4. Which branch of economics deals with the depletion of natural resources stock and pollution, which are a result of rapid economic development?

  5. An economy in which both, the private sector and the government are involved is known as a/an ______ economy.

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