Introduction to Economics 2 Deneme Sınavı Sorusu #350033
Which one of the following is not one of the criticisms against the use of HDI to represent the economic development?
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The HDI index does not distinguish between different rates of development within a country such as between urban and traditional rural communities.
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Giving equal weight to the three main components is rather arbitrary.
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Development is largely about freedom, but the index does not directly measure this.
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It uses a scale to rank the nations in terms of development. |
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It uses GDP per capita, but there is no indication of the distribution of income in the country. |
There are a number of criticisms against the use of HDI to represent the economic development, including:
1. The HDI index does not distinguish between different rates of development within a country such as between urban and traditional rural communities.
2. Giving equal weight to the three main components is rather arbitrary.
3. Development is largely about freedom, but the index does not directly measure this.
4. It uses GDP per capita, but there is no indication of the distribution of income in the country.
5. The HDI excludes many aspects of economic and social life that could be regarded as contributing to or constraining development, such as crime, corruption, poverty, deprivation, and negative externalities.
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