What are the three components of the Human Development Index and why are they important?

• A. Life expectancy, unemployment rate, and GDP growth; they measure economic performance.
• B. Literacy rate, access to clean water, and hospital beds per capita; they reflect basic services.
• C. Life expectancy at birth, education (mean years of schooling and expected years), and GNI per capita; they capture health, knowledge, and living standards.
• D. Inflation, interest rates, and trade balance; they assess macro stability.

Answer: (C)

Development is about people, not just money. The three components of the Human Development Index capture health, knowledge, and living standards. Life expectancy at birth shows how healthy and able people are to lead long lives. Education, via mean years of schooling and expected years of schooling, reflects knowledge and the ability to develop skills and participate fully in society. GNI per capita represents the resources available to support a decent standard of living. Together, these measures provide a broader picture of development than income alone, helping compare countries and track progress over time. Other options mix indicators that focus more narrowly on economics or basic services and don’t combine into the same holistic view.