Economics 0455 · IGCSE

Differences in economic development between countries

88 practice questions on Differences in economic development between countries, with worked solutions and instant marking.

The table presents data for four countries in 2006. Using the information provided, what is the probable order of the four countries by level of development, from the most developed to the least developed?

Feb/March 2017

The table presents the percentage change in employment over a period in a country that has three economic sectors. agriculture: $-6\%$ manufacturing: $+2\%$ services: $+4\%$ What conclusion can be drawn from this information?

Feb/March 2018

Which characteristic is commonly found in developed countries?

Feb/March 2018

The table gives the percentage distribution of the working population across different sectors in three countries. Iran: agriculture $38\%$, manufacturing $33\%$, services $29\%$ Nepal: agriculture $93\%$, manufacturing $2\%$, services $5\%$ UK: agriculture $2\%$, manufacturing $42\%$, services $56\%$ What conclusion can be drawn from the table?

Feb/March 2018

Every country has to produce food. Which form of agriculture would make the most effective use of the resources in developing and developed economies?

Feb/March 2019

What components make up a country’s Human Development Index (HDI)?

Feb/March 2019

A country’s minister for agriculture stated that “the greatest difficulty facing the country is to expand irrigation so that we are not dependent on the weather for vital export earnings”. Which type of country is this most likely to be?

Feb/March 2019

The Human Development Index (HDI) measures human development in countries on a scale from $0$ (lowest) to $1$ (highest). What is not included when HDI is calculated?

Feb/March 2020

As a nation develops economically, what is most likely to occur?

Feb/March 2023

What is most likely to be present in a high-income economy?

Feb/March 2023

The table presents the Human Development Index (HDI) values for two countries. What could account for the difference between the HDI values?

Feb/March 2025

The table indicates the share of GDP generated by each production sector in three imaginary countries. What conclusion can be drawn from the table?

May/June 2015

Which of the following is not a cause of the decline of manufacturing industries in developed economies in recent years?

May/June 2015

The table presents several economic indicators for four countries. What conclusion can be drawn from the table?

May/June 2015

In $2013$, subsistence farming, which engaged a large proportion of the population, was an important activity in the Philippines and Indonesia. What conclusion can be drawn about the Philippines and Indonesia from this information?

May/June 2015

Which feature is not usually a typical characteristic of a developed country?

May/June 2015

The Human Development Index is used to measure human development in countries. Which measure would not be included when it is calculated?

May/June 2015

The table shows the percentage of employment in the primary, secondary and service sectors for four countries. Which country is most likely to be a developed country?

May/June 2015

The table shows data for three economic indicators across four countries. What conclusion can be drawn from this information?

May/June 2016

Why might the figure obtained for a developing country’s Gross Domestic Product be inaccurate?

May/June 2016

The table presents information about four countries. Which country is most likely to be the most developed?

May/June 2016

China is described as a developing country. In recent figures, its Gross Domestic Product (GDP) came from agriculture 10%, construction 13%, manufacturing 32% and services 45%. Which contribution to GDP normally falls first as countries progress to a higher stage of development?

May/June 2016

Some people believe that the debts and interest payments owed by the world’s poorest countries ought to be written off. What could be one disadvantage for the poorest countries if this happened?

May/June 2016

How could workers emigrating benefit the economy of a developing country?

May/June 2016

What characteristic is shared by developed and developing economies?

May/June 2017

The table presents information on four countries. Which country is most likely to be the least developed?

May/June 2017

In the poorest developing countries, it is hard to measure the size of GDP. What is the main reason for this?

May/June 2017

Which characteristics are present in a typical developed country?

May/June 2018

Which characteristic is associated with a developed country rather than a developing country?

May/June 2018

The table presents the rice yield in four countries. Japan: 64 kilos per hectare China: 53 kilos per hectare Bangladesh: 20 kilos per hectare Thailand: 20 kilos per hectare What conclusion can be drawn from this information?

May/June 2018

In developing countries, services are usually provided in rural districts after they have been introduced in urban areas. For which service would this statement be incorrect?

May/June 2018

The table sets out rice yields for four countries. Rice yield, measured in kilos per hectare: - Japan: $64$ - China: $53$ - Bangladesh: $20$ - Thailand: $20$ What conclusion may be drawn from this information?

May/June 2018

Which components make up the Human Development Index (HDI)?

May/June 2019

As the range of smartphone functions has expanded, demand has become more price-inelastic. In low-income countries, smartphones are a key aid to economic development because they open access to education and banking services that were once unavailable in rural areas. They have also made it simpler for people to save and borrow their money.

May/June 2021

Which other components, besides Gross Domestic Product (GDP) per head, make up the Human Development Index (HDI)?

May/June 2022

Besides Gross Domestic Product (GDP) per head, which other components are used in the Human Development Index (HDI)?

May/June 2022

Study the source material carefully before you answer Question 1. Source extract: Happiness Bhutan fact file (2018): Population 0.8m; GDP per head $3250; Government spending $450 m; Government tax revenue $380 m; World Happiness Index ranking 95th; Human Development Index ranking 134th. The United Nations has issued a World Happiness Index every year since 2012. This index places countries in order using life expectancy, freedom, social support, trust, generosity and GDP per head. In 2019, New Zealand was placed 8th in the World Happiness Index. The governments of both Bhutan and New Zealand now take into account several influences on the happiness of their populations. Although more than half of Bhutan’s labour force is employed in agriculture, most people in New Zealand work in the tertiary sector. Working conditions, working hours, the nature of work and pay are different in the primary and tertiary sectors. Productivity is higher in every sector in New Zealand than in Bhutan. This is partly because New Zealand invests more in capital goods and education. New Zealand also has a higher GDP per head. GDP per head ($) may affect net migration (number of people) as shown for selected countries in 2017 in Fig. 1.1. Fig. 1.1 GDP per head ($) and net migration (number of people) of selected countries 2017. The countries shown are Bhutan, Cyprus, Kenya, Mozambique, New Zealand and Slovenia. The diagram key shows net migration (number of people) and GDP per head ($). In its 2019 budget, the New Zealand government stated that it would measure progress not through rises in GDP but through improvements in the quality of people’s lives. To do this, it announced extra spending on some areas including mental health, child poverty and pollution. Some economists criticised this view. They argued that the best way for the government to improve living standards is to cut income tax rates. This cut could alter government spending and the quantity of products that people purchase, including cars. Tax revenue rose in New Zealand in 2019, partly because revenue from corporation tax increased. However, firms’ future profits were hard to predict. This was because of uncertainty about what would happen to its GDP and its corporation tax rates.

May/June 2022

In 1982, Nauru recorded the world’s highest GDP per head. Its primary sector was large, and it exported phosphate, a natural fertiliser. Even so, this natural resource was exhausted after a short time. Nauru is now experiencing market failure because of pollution and unhealthy food imports. Although its imports of goods are greater than its exports of goods, it still shows a surplus on the current account of its balance of payments.

May/June 2022

Which of the following statements is correct regarding the Human Development Index (HDI) and real GDP?

May/June 2023

Which change would be least likely to occur in a country as it develops?

May/June 2023

Which combination of factors could lead a country to be classified as developing instead of developed?

May/June 2023

Liechtenstein is a high-income economy in the centre of Europe. Because the country has low tax rates and limited regulation, it is an appealing location for foreign firms and individuals to set up bank accounts. Production costs for firms in Liechtenstein are high, but this is partly balanced by low indirect taxation.

May/June 2023

The table presents information about four countries. Which country is most likely to be the most developed?

May/June 2024

In what way is the pattern of employment likely to change as a country becomes more developed?

May/June 2024

Economic development in country X has advanced more quickly than in country Y. What is the most likely reason for this gap in economic development between country X and country Y?

May/June 2024

Andorra’s public sector is concentrating on expanding the healthcare, biotechnology and sports industries. The country has the natural benefit of being mountainous. A number of winter sports businesses in Andorra have recently joined together. This will alter the degree of competition in Andorra’s winter sports market.

May/June 2025

Which feature would be most useful for identifying a typical developing country?

Oct/Nov 2015

Turkey’s agricultural sector accounts for $48\%$ of the country’s workforce, whereas the figure is $17\%$ in the United States (US) and $3.9\%$ in France. What conclusion could be drawn from this?

Oct/Nov 2015

The share of people in work differs across industries and also between developing and developed economies. Which row in the table is most likely to show the greatest percentage of workers employed?

Oct/Nov 2015

Which other item is included in a country’s Human Development Index (HDI), apart from real GDP per head and life expectancy at birth?

Oct/Nov 2015

48% of Turkey’s workforce is employed in the agricultural sector, whereas the figures are 17% in the United States (US) and 3.9% in France. What conclusion can be drawn from this?

Oct/Nov 2015

In Turkey, the agricultural sector provides jobs for $48\%$ of the workforce, whereas the figures are $17\%$ in the United States (US) and $3.9\%$ in France. What conclusion can be drawn from this?

Oct/Nov 2015

Myanmar (Burma) is aiming to progress from a developing country to a developed one. Its savings ratio is lower than that of most other Asian economies, because its people spend most of their income. The Government is encouraging foreign investment to increase economic growth. It is also using fiscal policy in an effort to reduce poverty, which affects one third of its population.

Oct/Nov 2015

Which outcome is least likely to occur alongside greater economic development?

Oct/Nov 2016

In what way is the pattern of employment likely to change as a country develops further?

Oct/Nov 2016

In the 48 countries with the lowest Human Development Index (HDI) scores, 28 million people are employed overseas. They put aside part of what they earn so they can send it back to family members at home. Studies indicate that most of this money transfer is used by families for food and housing, which improves their living standards. In 2013, these remittances were worth twice as much as the foreign direct investment received by these countries.

Oct/Nov 2016

The diagrams illustrate the percentage of employment in different sectors in two countries. Which statement is correct when country X is compared with country Y?

Oct/Nov 2017

The table provides details on four countries. Which country is most likely to be the most developed?

Oct/Nov 2017

The diagrams illustrate the percentage of employment in different sectors in two countries. Which statement is correct when country X is compared with country Y?

Oct/Nov 2017

The table presents some economic indicators. Which set of indicators is most likely to describe a developed country?

Oct/Nov 2018

Aid is sometimes provided to developing countries by charities and foreign governments. Which type of aid programme would be least likely to result in long-term economic growth?

Oct/Nov 2018

Which change would be most likely to occur as an economy develops?

Oct/Nov 2018

Charities and foreign governments sometimes provide aid to developing countries. Which aid programme is least likely to result in long-term economic growth?

Oct/Nov 2018

Charities and foreign governments sometimes provide aid to developing countries. Which type of aid programme would be least likely to result in long-term economic growth?

Oct/Nov 2018

Which components make up the Human Development Index (HDI)?

Oct/Nov 2019

What is a common feature of a developing country?

Oct/Nov 2019

Which change, when measured as a percentage of GDP, would be unlikely to occur in a country as it develops?

Oct/Nov 2019

Mali is classed as a developing country. Its Human Development Index (HDI) increased from 0.297 in 2000 to 0.442 in 2016. Most workers in Mali are employed in agriculture, and cotton is the main agricultural crop. However, the country’s largest export is gold. Mali ranks as Africa’s third-largest exporter of gold.

Oct/Nov 2019

Which factor constrains economic development in the world’s low-income countries?

Oct/Nov 2020

The table presents the percentage of employment in the primary, secondary and service sectors for four countries. Which country is most likely to be the most developed?

Oct/Nov 2020

What factor restricts the economic development of low-income countries around the world?

Oct/Nov 2020

The table presents the percentage of employment in the primary, secondary and service sectors across four countries. Which country is most likely to be the most developed?

Oct/Nov 2020

Which factor limits economic development in the world’s low-income countries?

Oct/Nov 2020

The table presents the percentage of employment in the primary, secondary and service sectors for four countries. Which country is most likely to be the most developed?

Oct/Nov 2020

Many low-income countries depend on multinational companies (MNCs) to support economic development. What is one disadvantage of this dependence for such a country?

Oct/Nov 2020

Changes in tobacco output and use can produce both microeconomic and macroeconomic consequences. Tobacco is cultivated in at least 124 countries with different levels of development. A greater share of the poor than the rich use tobacco products. The cigarette market, which is made from tobacco, is also changing. In a number of countries, demand for cigarettes and some other demerit goods is falling.

Oct/Nov 2020

The table presents the Human Development Index (HDI) for a country in two years. Year 1: HDI score $0.467$. Year 2: HDI score $0.609$. Which factor would not account for the changes in the HDI?

Oct/Nov 2022

The table gives the percentage (%) contribution made by agriculture to the GDP of three countries in one year. What conclusion can be drawn from the table?

Oct/Nov 2022

Which components are included in the Human Development Index (HDI)?

Oct/Nov 2022

The Human Development Index (HDI) can be used to assess human development in countries. Which measure would not be included in its calculation?

Oct/Nov 2023

In certain developing countries, a high proportion of the population works in subsistence farming. What conclusion can be drawn from this?

Oct/Nov 2023

In 2019, Mozambique was struck by a severe storm that wrecked bridges, factories, roads and electricity lines. Nearly 60% of Mozambique’s population live in absolute poverty. The country’s people are eager to raise Mozambique’s economic development. Government intervention in Mozambique’s economy is high. Although Mozambique does not use import quotas, it does apply a range of import tariffs.

Oct/Nov 2023

Employees in Switzerland receive higher average pay than employees in Mexico. What is one likely reason for this?

Oct/Nov 2024

Which combination most accurately describes the characteristics of a high-income economy?

Oct/Nov 2024

From the data in the table, which country would be regarded as the most developed?

Oct/Nov 2024

Davos, a ski resort in Switzerland, is well known for hosting a world economic conference where leaders from the private and public sectors meet. The issues discussed are usually connected with global economic development. In Davos, hospitality firms rely on seasonal migrant labour, especially when they need to expand the supply of goods and services rapidly.

Oct/Nov 2024

Which combination of features would be present in a less developed economy?

Oct/Nov 2025

Background text: Economic change in Malawi Malawi is a low-income country in East Africa. It is frequently hit by natural disasters such as droughts, floods and storms. In January 2022, Malawi was affected by Storm Ana. This caused damage to agricultural crops, factories, forests and power stations. More than three-quarters of Malawi’s labour force work in agriculture. Tea and sugar are two of the country’s major crops. The amount of tea supplied for sale is influenced by weather conditions, government subsidies and fertiliser prices. The world sugar market has also been affected by health reports that identified the possible harmful effects of eating too much sugar. Three of the Malawian Government’s priorities are to develop new industries, improve education standards and expand more sustainable sources of energy. The share of Malawian children who complete their primary education (5-11 years of age) is relatively low. Table 1.1 gives GDP per head and the percentage of children who finish primary education in selected countries in 2022. Only a small share of Malawi’s population has access to electricity. Most households depend on wood and charcoal for cooking and heating. Using wood as fuel contributes to forest loss and worsens air quality. However, the country receives 3000 hours of sunshine each year. This suggests that solar energy could be developed. There would be an initial expense to install solar panels and to lower the risk of storm damage. Solar energy plants (also called solar farms) can occupy a large area and create visual pollution. Even so, a successful solar energy industry could cut Malawi’s fuel imports and might influence its exchange rate. Malawi’s foreign exchange rate fell in 2022. The country’s currency, the kwacha, bought fewer US dollars. This depreciation affected Malawi’s current account of the balance of payment, its inflation rate and its economic growth rate. Some economists argued that the Malawian Government should prevent the kwacha from falling further in value.

Oct/Nov 2025