Read the United Nation Development Programme's discussion of the Human Development Index.

Questions

1. What are the advantages of using a measure such as the Human Development Index to compare economic wellbeing across countries?
2. Why might there be some problems is using per capita GDP as a way of comparing economic well being in different countries? As part of your answer, consider the effect of differences in:
   1. household production
   2. pollution
   3. crime
   4. leisure time
   5. income distribution
3. While the Human Development Index may be a reasonable measure to compare wellbeing in different countries, would it be a very useful guide to policymakers conducting fiscal and monetary policy in a given economy? Why are most government policymakers more concerned with GDP?