RAS Prelims: Concepts and Practice

Learning outcome

You can say what the Human Development Index adds beyond income.

Concepts and why

A money measure of growth looks at income or output. The Human Development Index, as the United Nations Development Programme defines it, is a summary of three dimensions: a long and healthy life, knowledge, and a decent standard of living. Health in that index is read from life expectancy at birth. Knowledge is read from years of schooling. The standard of living is read from income per person. So the index uses income, and it also uses health and knowledge. Income alone is not the whole index. This lesson does not give a country rank or a current score. Those change.

Worked examples

A question asks whether a rise in income is the same thing as a rise in the Human Development Index. It is not. The index also moves with health and knowledge. A question asks how many dimensions that index summarises. The answer is three.

Common mistakes

Treating the index as an income ranking only. Dropping health or schooling from the three dimensions. Memorising a rank or a score as if it were a fixed fact.

Practice questions

1. How many dimensions does the Human Development Index summarise?
2. Name the dimension that uses life expectancy at birth.
3. Does the index ignore income?

Answers and explanations

1. Three.
2. A long and healthy life.
3. No. Income per person is the standard-of-living dimension. Health and knowledge are the other two.

Analogy

A report card with only the fee receipt tells you what was paid. A report card with health, lessons, and the fee tells you more. The Human Development Index is the wider card. Income is one line on it.

Quick reference

Human Development Index: health, knowledge, and a decent standard of living. Health: life expectancy at birth. Knowledge: years of schooling. Living standard: income per person. Income alone is not the whole index.