The correct answer is option 1. • Human Development Index (HDI) • The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. • The HDI can also be used to question national policy choices, asking how two countries with the same level of GNI per capita can end up with different human development outcomes. • The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable, and have a decent standard of living. Hence, statement a is correct. • The HDI is the geometric mean of normalized indices for each of the three dimensions. • The health dimension is assessed by life expectancy at birth, the education dimension is measured by the mean of years of schooling for adults aged 25 years and more and expected years of schooling for children of school entering age. • The standard of living dimension is measured by gross national income per capita. Hence, statement b is incorrect. • The HDI uses the logarithm of income, to reflect the diminishing importance of income with increasing GNI. • The scores for the three HDI dimension indices are then aggregated into a composite index using a geometric mean. • The HDI simplifies and captures only part of what human development entails. • It does not reflect on inequalities, poverty, human security, empowerment, etc. Explanation & Key Takeaways: