Analyzing Global Indices Statements

The question asks to identify the statement that is incorrect regarding global indices as of July 2025. Let's analyze each statement:

World Happiness Report Factors

Statement 1 suggests that the World Happiness Report 2024 emphasizes social support, life expectancy, and GDP per capita as key factors influencing happiness. This aligns with the general methodology of the report, which typically considers these variables along with others like freedom to make life choices, generosity, and perceptions of corruption to rank countries by their happiness levels.

Air Quality Index (AQI) Implications

Statement 2 discusses the Air Quality Index (AQI). An AQI consistently above 200 is generally considered unhealthy or hazardous, indicating significant air pollution levels that pose risks to the general population. Such conditions often necessitate urgent attention and policy interventions to mitigate health effects and environmental damage.

Ease of Doing Business Report's Legacy

Statement 3 addresses the Ease of Doing Business report. Although the World Bank discontinued this report, its historical data and rankings have significantly influenced perceptions and policy decisions related to the business environment, particularly for investors evaluating the ease of starting and operating businesses in different countries.

Human Development Index (HDI) Calculation

Statement 4 claims that a rise in GNI per capita alone can significantly improve the Human Development Index (HDI), even if life expectancy and education decline. This statement is incorrect.

The Human Development Index (HDI) is a composite statistic that measures average achievement in three basic dimensions of human development:

• A long and healthy life (measured by life expectancy at birth)
• Knowledge (measured by mean years of schooling and expected years of schooling)
• A decent standard of living (measured by Gross National Income (GNI) per capita, adjusted for purchasing power parity)

The HDI is calculated using these three dimensions. A significant improvement in the overall HDI score requires progress across all these dimensions. While an increase in GNI per capita contributes positively to the standard of living dimension, a decline in life expectancy or educational attainment would negatively impact the other dimensions. These negative impacts would likely counteract or offset the gains from increased GNI per capita, preventing a significant overall improvement in the HDI score. Therefore, GNI per capita alone cannot drive a substantial HDI increase if other key components are deteriorating.

Conclusion on Incorrect Statement

Based on the methodology of the Human Development Index, statement 4 presents an inaccurate scenario regarding how the index is improved.