Q61. The Inequality-adjusted Human Development Index determines the level of human development when:
Measurement of Development: HDI and Related Indices: RAS Prelims MCQs
100 RAS Prelims MCQs on the measurement of development cover the Human Development Index and related indices. The creator of HDI, its three dimensions, the goalposts used in the Education Index, the logarithm applied to income, min-max scaling, India’s category and the Gender Development Index are asked as facts and statements.
Practice questions based on the RPSC RAS Prelims syllabus. They follow the exam pattern but are not past-paper questions.
Showing 61–70 of 100 questions
Q62. If the Inequality-adjusted Human Development Index of a country is exactly equal to its standard Human Development Index, it indicates that:
Explanation
When there is no loss in human development due to inequality, the adjusted index score will match the standard score exactly. This situation only occurs if health, education, and income are distributed perfectly across the entire population. In reality, most countries see a lower adjusted score, with the gap between the two measures representing the loss in potential development caused by internal disparities.
Q63. Which mathematical inequality measure does the Inequality-adjusted Human Development Index primarily rely upon to discount the average values of the dimensions?
Explanation
To adjust the standard development index for inequality, a specific mathematical approach is used to discount each dimension’s average value. This method, based on a well-known welfare function, emphasizes the importance of a more equal distribution. It calculates the loss in development by comparing the geometric and arithmetic means of the distribution, providing a nuanced view of how inequality affects overall national progress.
Q64. Consider the following statements regarding the Inequality-adjusted Human Development Index:
I. The index aims to capture the loss in potential human development due to inequality.
II. In countries with high inequality, the Inequality-adjusted Human Development Index value is substantially lower than the standard HDI value.
III. It applies a uniform discount rate to all countries regardless of their internal distribution.
Which of the above statement(s) is/are correct?
I. The index aims to capture the loss in potential human development due to inequality.
II. In countries with high inequality, the Inequality-adjusted Human Development Index value is substantially lower than the standard HDI value.
III. It applies a uniform discount rate to all countries regardless of their internal distribution.
Which of the above statement(s) is/are correct?
Explanation
The inequality-adjusted index is designed to show the potential human development lost due to uneven distribution. Consequently, in nations where inequality is high, the adjusted score is significantly lower than the standard average. This calculation is not based on a uniform discount rate; instead, it varies for each country depending on the actual internal distribution of health, education, and income across its citizens.
Q65. Match the items in List I with those in List II:
| Specific UNDP Index | Core Concept/Adjustment Focus |
|---|---|
| A. Standard HDI | i. Gender gaps in human development achievements |
| B. IHDI | ii. Overlapping deprivations at the household level |
| C. GDI | iii. Loss in human development due to uneven distribution |
| D. MPI | iv. Average achievements in basic human development dimensions Options: |
Explanation
International organizations use different indices to capture various aspects of progress. The standard measure tracks average achievements, while another adjusts these scores for internal inequality. Gender-specific gaps are measured through a ratio of achievements between sexes. Finally, a multidimensional approach identifies specific, overlapping deprivations at the household level, offering a comprehensive understanding of the hardships faced by the most vulnerable populations.
Q66. The Happy Planet Index measures human well-being and environmental impact using which of the following components?
Explanation
This alternative metric assesses how efficiently nations use their natural resources to support the well-being of their citizens. It combines subjective reports of life satisfaction with objective data on how long people live. By dividing this product by the country’s environmental footprint, it identifies which societies are achieving high quality of life without overexploiting the planet’s finite ecological resources.
Q67. Which of the following statements about the World Happiness Report is incorrect?
Explanation
The annual report on global happiness is based on extensive survey data and ranks nations by their average life evaluation scores. While it is widely cited by international bodies, it is produced by a specialized sustainable development network rather than the United Nations Development Programme. Finland has famously topped these rankings for several consecutive years, reflecting high levels of social trust and support.
Q68. Which specific tool is used in the Gallup World Poll to assess the subjective life evaluation component in the World Happiness Report?
Explanation
In global surveys of subjective well-being, respondents are asked to imagine a staircase with ten steps, where the top represents their best possible life. They then indicate which step they currently feel they are standing on. This specific tool provides a clear numerical measure of life satisfaction that can be compared across different cultures and nations to assess overall societal happiness levels.
Q69. Consider the following statements regarding the World Happiness Report:
I. It explains variations in happiness using six key variables, including GDP per capita and social support.
II. Healthy life expectancy and freedom to make life choices are among the core variables analyzed.
III. Generosity and perceptions of corruption are excluded from the analysis to prevent bias.
IV. India has historically ranked relatively low in the index, often trailing behind some of its neighbors.
Which of the above statements are correct?
I. It explains variations in happiness using six key variables, including GDP per capita and social support.
II. Healthy life expectancy and freedom to make life choices are among the core variables analyzed.
III. Generosity and perceptions of corruption are excluded from the analysis to prevent bias.
IV. India has historically ranked relatively low in the index, often trailing behind some of its neighbors.
Which of the above statements are correct?
Explanation
Global happiness rankings are explained through variables like economic output, social support, and healthy life expectancy. Perceptions of corruption and personal freedom are also key factors included in the analysis. Historically, India has ranked lower than several neighboring nations in these assessments. This indicates that while the country’s economy is growing, other social and subjective factors impacting well-being face significant challenges.
Q70. Read the following statements carefully:
Statement I: The Happy Planet Index heavily penalizes countries with large ecological footprints, regardless of their high life expectancy.
Statement II: The World Happiness Report focuses solely on subjective well-being and completely ignores objective economic indicators like GDP.
Which of the following is correct?
Statement I: The Happy Planet Index heavily penalizes countries with large ecological footprints, regardless of their high life expectancy.
Statement II: The World Happiness Report focuses solely on subjective well-being and completely ignores objective economic indicators like GDP.
Which of the following is correct?
Explanation
One index specifically penalizes countries that have high environmental costs, even if their citizens live long lives. This ensures that sustainability is a core part of the assessment. Meanwhile, the global happiness report does not ignore economic facts. It uses national income per capita as one of its primary variables to explain why some countries report higher levels of subjective well-being than others.Answer key for these questions
| Q | Correct answer |
|---|---|
| 61 | (c) Accounting for distribution-based inequalities |
| 62 | (b) Perfect equality in dimension distribution exists |
| 63 | (a) Atkinson inequality measure |
| 64 | (a) I and II only |
| 65 | (a) A-iv, B-iii, C-i, D-ii |
| 66 | (a) Well-being, life expectancy, and ecological impact |
| 67 | (c) It is published annually by the United Nations Development Programme |
| 68 | (d) The Cantril Ladder |
| 69 | (b) I, II and IV only |
| 70 | (c) Statement I is correct but Statement II is incorrect |
Key facts from Measurement of Development: HDI and Related Indices
- Mahbub ul Haq is credited with creating the Human Development Index.
- The three dimensions of HDI are health, education and standard of living.
- Income is transformed by a logarithm to account for diminishing marginal utility of income.
- The maximum goalposts in the Education Index are 18 years for expected years of schooling and 15 years for mean years of schooling.
- HDI values are normalised by min-max scaling; India falls in the Medium Human Development category.
- The Gender Development Index is the ratio of the female HDI to the male HDI; Sri Lanka has consistently been placed higher than India among its neighbours.
Frequently asked questions
How many RAS Prelims practice MCQs are there on Measurement of Development: HDI and Related Indices?
This page has 100 practice MCQs on Measurement of Development: HDI and Related Indices (Indian Economy). Each has the correct answer, and most have an explanation.
Who created the Human Development Index?
The economist Mahbub ul Haq, who developed it with Amartya Sen’s ideas for the UNDP’s first Human Development Report in 1990. It measures achievement in health, education and standard of living, not income alone.
Why is income transformed using a logarithm in HDI?
To account for diminishing marginal utility of income. Each additional rupee adds less to human well-being at higher incomes, so the index counts a rise in income at low levels as more important than the same rise at high levels.
What does the Gender Development Index measure?
It measures gender gaps in human development achievements by taking the ratio of the female HDI to the male HDI. A value of 1 means that women and men have equal achievement.