Indicators of Wellbeing - GDP and HDI

Question 1

Definition of GDP

Answer 1

Gross Domestic Product.
Total value of goods and services for a country, per capita (per person).
High GDP enabled economic growth, job creation and better public services.

Question 2

Definition of HDI

Answer 2

Human Development Index.
A measure of wellbeing, based on 3 components.

Question 3

3 Components of HDI

Answer 3

1. Life expectancy at birth
2. Knowledge: expected years of schooling for children at school entering age, average years of schooling for adults over 25 years old.
3. Standard of living, measured by Gross National Income (GNI) per capita.

Question 4

Which one is more important at measuring wellbeing? (GDP vs HDI)

Answer 4

HDI shows more accurate measurement of human wellbeing, since it incorporates three pieces of data that focuses on quality of life more than monetary value.