economics medium MCQ

Since 2010, the United Nations Development Programme (UNDP) calculates the Human Development Index (HDI) using which mathematical method to aggregate the health, education, and income dimensions?

  1. Simple Arithmetic Mean
  2. Weighted Harmonic Mean
  3. Geometric Mean
  4. Median Value

Answer: Geometric Mean

Prior to 2010, the HDI used an arithmetic mean, which allowed a massive surplus in one dimension (like income) to perfectly compensate for a severe deficit in another (like life expectancy). By shifting to the Geometric Mean, the UNDP ensured that poor performance in any single dimension (e.g., terrible health outcomes) cannot be mathematically masked by high income, strictly penalizing unbalanced development.

Topic International Economics - Institutions
Exam Relevance UPSC Prelims, SSC CGL
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