Why Is the Human Development Index Thought to Be a Better

question 54

Multiple Choice

Why is the Human Development Index thought to be a better measure of economic well-being than real GDP per person?

• A)It includes a measure of resource depletion.
• B)It ignores health, which is hard to measure.
• C)It includes leisure time and household production.
• D)It includes health and education measures, as well as real GDP per person.
• E)It includes only health and education measures, ignoring real GDP per person.

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Definitions:

Internalization of Externalities

Refers to actions taken to incorporate the external costs or benefits of a good or service into the price paid by the consumers or producers.

Sewage-Treatment Plant

A facility designed to receive the wastewater from domestic, commercial, and industrial sources and to remove materials that damage water quality and threaten public health and safety.

Environmental Standard

Rules and criteria set by governmental bodies to protect the environment by controlling pollution levels and resource use.

Production Process

The activities, operations, and methodologies used in transforming raw materials into finished goods or services.