Read the below statements marked as Assertion (A) and Reason (R). Mark the correct options:
Assertion (A): The Human Development Index can increase even if income drops.
Reason (R): Improvements in life expectancy and education can offset income decline.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Both A and R are true, and R is the correct explanation of A.
The Human Development Index (HDI) is a composite statistic consisting of three dimensions: Life Expectancy (health), Mean/Expected Years of Schooling (education), and GNI per capita (standard of living). Since HDI calculates the geometric mean of these three indices, significant progress in health and education can mathematically compensate for a minor or moderate drop in income. Therefore, a country's overall human development can improve if its citizens live longer and are better educated, even during an economic downturn.