Why Might We Want to Use the Human Development Index

question 123

Multiple Choice

Why might we want to use the Human Development Index to compare standards of living between countries?

• A) Because countries may have different currencies, so that we cannot compare GDP per capita.
• B) Because we need to adjust for purchasing power parity between countries.
• C) Because other factors, such as schooling and life expectancy, might vary between countries even if they have the same GDP per capita.
• D) Because GDP per capita is inaccurate when there is income inequality in a country.

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Definitions:

Incompetent Person

Refers to an individual who is legally declared unable to handle their own affairs due to mental incapacity or illness.

Reasonable Value

The fair or market price of goods or services, considered to be a fair compensation in legal contexts.

Necessary Item

A good or service required for basic living or to fulfill certain legal obligations.

Necessary Item

Essential goods or services required for individuals to maintain their living standard or for businesses to operate efficiently.