Economics Hdi Questions
The Human Development Index (HDI) accounts for income inequality by including the Inequality-adjusted HDI (IHDI) as a supplementary measure. The IHDI takes into consideration not only the average income of a country but also the distribution of income among its population. It adjusts the HDI value based on the level of inequality within a country, giving a more comprehensive picture of human development. This allows for a more accurate assessment of a country's progress in terms of human development, taking into account the impact of income inequality on overall well-being.