Waec Model Questions Vol1 2021 Economics Question 10

The Human Development Index (HDI) is the arithmetic mean of three dimension indices: Health (life‑expectancy index), Education (average of mean‑years‑of‑schooling index and expected‑years‑of‑schooling index) and Standard of Living (GNI per capita index). Each index is calculated as \((actual - min)/(max - min)\). For Country A the data are: - Life expectancy: 68 years (min 20, max 85) - Mean years of schooling: 7 years (min 0, max 15) - Expected years of schooling: 12 years (min 0, max 18) - GNI per capita: $4,500 (use natural‑log transformation; min ln 100 = 4.6052, max ln 75,000 = 11.2253) (a) Compute the current HDI for Country A (round to three decimal places). Now suppose the country improves its life expectancy to 72 years and its GNI per capita to $6,000, while the education indicators remain unchanged. (b) Compute the new HDI and the percentage increase in HDI (rounded to one decimal place).