Question : Which of the following is an example of human capital measurement?
Option 1: Gross Domestic Product (GDP)
Option 2: Consumer Price Index (CPI)
Option 3: Human Development Index (HDI)
Option 4: Producer Price Index (PPI)
Correct Answer: Human Development Index (HDI)
Solution : The correct answer is (c) - Human Development Index (HDI).
The Human Development Index is a composite measure used to assess the overall well-being and development of a country's population. It takes into account various dimensions of human development, including education, health, and income. The HDI incorporates indicators such as literacy rates, school enrollment rates, life expectancy, and per capita income to provide a comprehensive picture of human development within a country.
The HDI reflects the notion that human capital goes beyond economic measures like GDP (option a) and extends to factors such as education and health. While GDP is an indicator of economic output, it does not capture the full spectrum of human capital.
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