In: Economics
Scenario: In Riverland, life expectancy is rising and has just surpassed life expectancy in its neighbor country, Lakeland.
Refer to the scenario above. This implies that ________.
A) Riverland's per capita GDP has surpassed Lakeland's
B) Riverland's Human Development Index has surpassed Lakeland's
C) Riverland's Human Development Index likely will be greater than Lakeland's if its per capita GDP is greater
and schooling is of similar length and quality
D) Riverland's per capita GDP likely will be greater than Lakeland's if the Human Development Index is
greater
Ans: (C) Riverland's Human Development Index likely will be greater than Lakeland's if it's per capita GDP is greater and schooling is of similar length and quality
Human Development Index consists of three different indices as you can see in the image below
The Human Development Index is the geometric mean of these individual indices
We know the HDI is geometric mean of these three indices and Riverland is ahead of Lakeland in two of three indices and similar in another one. Therefore, the HDI of Riverland is higher than Lakeland
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