Economics · Human Development Index
When high income inequality leads to unequal access to education and health, the Inequality-adjusted Human Development Index (IHDI) of a nation:
- 1Increases due to the higher income group average
- 2Remains stable since HDI ignores inequality
- 3Decreases due to inequality-adjusted losses✓
- 4Is unaffected unless absolute poverty increases
Correct answer
Decreases due to inequality-adjusted losses
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