What type of income does the HDI Income Index look at? Use no more than TWO words in your answer.

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BlackTom AI · Accepted Answer

The prompt presents a short-answer style question and notes there are no answer choices provided, so we cannot select from options. To understand what the HDI Income Index looks at, recall that the Human Development Index uses a measure of income component known as Gross National Income per capita, usually denoted as GNI per capita and expressed in purchasing power parity terms (PPP$). In common shorthand, many learners are asked to provide a two-word answer that captures the type of income, which aligns with the phrase GNI per-capita.

First, consider what 'type of income' means in this context: it is not wages, nor is it profit or corporate earnings specifically; rather, it reflects an overall national income available per person.

Next, distinguish this from other possible interpretations: GDP per capita is related but not identical to GNI per capita; the HDI uses GNI per capita, not GDP per capita, when constructing the income dimension. Also, the term 'income' here is a broad national figure rather than household or personal income, so focusing on national income concepts is important.

Given the instruction to use no more than two words, you would compress the concept into a widely recognized two-word label that represents the income component used by the HDI in its methodology.

Note: If you were unsure about the exact phrasing, you could check official UNDP HDI documentation to confirm that the income dimension is based on GNI per capita (PPP$). This distinction helps avoid conflating it with other similar indicators like GDP per capita.

ME Mod4 Intake 2A - 14 Apr 2025 - 4 Jul 2025 Activity 7.2A - Lecture: Development and Sustainability Goals - Comprehension Questions

What type of income does the HDI Income Index look at? Use no more than TWO words in your answer.

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