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Choose if the given statement is true/false.

The HDI is a more adequate indicator of welfare than National income because HDI takes into account longevity and educational attainment in addition to per capita real income.

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True

False

answer is A.

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Detailed Solution

The given statement is true.
HDI(Human Development Index) is a better indicator than National Income because:

An increase in per capita income can be due to modern capital-intensive technology that adversely affects the poor.

Unequal distribution of per capita income makes the rich richer and the poor poorer.

Per capita income ignores non-material things like happiness index, security, health, literacy, etc.

On the other hand, HDI(Human development index) not only focuses on economic aspects but involves all the things that are integral to the development of a country.

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