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      Question

      If India’s HDI improves but poverty headcount ratio

      remains high, which of the following is the most likely reason?
      A HDI ignores income inequality Correct Answer Incorrect Answer
      B HDI ignores life expectancy Correct Answer Incorrect Answer
      C Poverty is not related to HDI Correct Answer Incorrect Answer
      D HDI uses only GDP Correct Answer Incorrect Answer
      E Poverty headcount ignores education Correct Answer Incorrect Answer

      Solution

      HDI uses average income, life expectancy, and schooling. It does not measure how income is distributed. So average can rise while many remain poor.

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