How is the Human Development Index (HDI) calculated and what three dimensions does it include?

How is the Human Development Index (HDI) calculated and what three dimensions does it include?

• A. HDI is the geometric mean of normalized life expectancy, education, and standard of living (GNI per capita).
• B. HDI is the arithmetic mean of GDP per capita, literacy rate, and life expectancy.
• C. HDI is the sum of life expectancy, education, and GNI per capita.
• D. HDI uses only life expectancy.

Answer: (A)

The main idea is that the HDI measures development across three dimensions—health, education, and standard of living—and combines them in a way that respects each part equally. Each dimension is turned into a separate index on a 0-to-1 scale by normalizing the underlying indicators. For health, life expectancy at birth forms the health index. For education, two indicators—mean years of schooling and expected years of schooling—are combined to make the education index. For standard of living, the measure is GNI per capita ( usually on a log scale) to form the income index. Once you have these three dimension indices, the HDI is their geometric mean, i.e., the cube root of their product. This design means a low score in any one dimension pulls the overall HDI down, emphasizing balanced development. So the description that the HDI is the geometric mean of normalized life expectancy, education, and standard of living (GNI per capita) matches how the index is constructed.

The main idea is that the HDI measures development across three dimensions—health, education, and standard of living—and combines them in a way that respects each part equally. Each dimension is turned into a separate index on a 0-to-1 scale by normalizing the underlying indicators. For health, life expectancy at birth forms the health index. For education, two indicators—mean years of schooling and expected years of schooling—are combined to make the education index. For standard of living, the measure is GNI per capita ( usually on a log scale) to form the income index. Once you have these three dimension indices, the HDI is their geometric mean, i.e., the cube root of their product. This design means a low score in any one dimension pulls the overall HDI down, emphasizing balanced development.

So the description that the HDI is the geometric mean of normalized life expectancy, education, and standard of living (GNI per capita) matches how the index is constructed.