The main indicators of development, including the Human Development Index (HDI)
Economists use several measures to judge how developed a country is. The most important is the HDI, which combines income, health, and education into one score.
Formula
HDI = ⅓(Health index) + ⅓(Education index) + ⅓(Income index)
Real World
Norway consistently tops the UN's HDI rankings, scoring near 1.0 across life expectancy, years of schooling, and GNI per capita, while a country like Qatar has high income but lower HDI due to weaker education scores.
Exam Focus
State HDI's three components explicitly in exams — vague references to 'living standards' without naming them will not score full marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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