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The United Nations' Human Development Index (HDI) is based on real GDP per person, life expectancy at birth, and indicators of the quality and quantity of education.
a. Explain why the HDI might be better than real GDP as a measure of economic welfare.
b. Which items in the HDI are part of real GDP and which items are not in real GDP?
c. Do you think the HDI should be expanded to include items such as pollution, resource depletion, and political freedom? Explain.
d. What other influences on economic welfare should be included in a comprehensive measure?
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