'The Human Development Index (HDI) is a more useful indicator of changes in living standards than changes in Gross Domestic Product (GDP) but it still does not provide an entirely accurate assessment of whether living standards have improved over a given time period.' Critically evaluate this statement.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

1. [25] An explanation of why changes in Gross Domestic Product are used to assess changes in living standards should be combined with an assessment of why this might not produce an accurate assessment.
2. [25] References should be made to GDP per capita and real GDP.
3. [25] The key elements of HDI should be identified and discussed in relation to GDP.
4. [25] Other key factors which are not covered by both these indicators should be considered – for example income distribution, negative externalities, leisure time etc. should be discussed.
5. [25] Other indicators such as the Multi-dimensional poverty index, happiness index, gender development index might be referred to.
6. [25] A conclusion should be provided.