Which index is used to measure development by combining factors such as income and life expectancy?

• A. GATT
• B. Dependency
• C. HDI
• D. GNP per capita

Answer: (C)

Development is best captured as a multi-dimensional concept that goes beyond income alone, so a single index that blends several indicators is used. The Human Development Index combines standard of living (income per capita), health (life expectancy at birth), and education (mean and expected years of schooling) into one measure. This approach, developed by the United Nations Development Programme, aims to reflect overall well-being and potential for people, not just how wealthy a country is. That’s why it’s the best answer here: it goes beyond GDP or GNP per capita to include health and education, whereas GNP per capita measures income only, GATT is a trade pact, and Dependency is a theoretical idea about unequal global relationships.