Which indicator measures development by combining income, literacy, education, and life expectancy?

• A. HDI
• B. Literacy Rate
• C. Maternal Mortality Ratio
• D. Microfinance

Answer: (A)

A composite index that blends health, education, and income to gauge development. The Human Development Index does this by combining life expectancy at birth (health), educational attainment (mean years of schooling for adults and expected years of schooling for children), and income per capita (GNI per capita, PPP-adjusted) into a single score. Each dimension is scaled to a 0–1 range and then combined, often with a geometric mean, so weaknesses in one area aren’t fully offset by strengths in another. This yields a more rounded picture of development than any single metric.

Literacy rate alone only shows reading and writing ability and misses health and economic dimensions. Maternal mortality ratio focuses on a specific health outcome related to pregnancy, not overall development. Microfinance is a practical financing approach, not a measure of development.