Economics 0455 · IGCSE · Differences in economic development between countries
Differences in economic development between countries — practice question
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.
(a)[2]
What happens to the amount and the proportion of income devoted to food as people become richer?
(b)[4]
Explain the difference between saving and borrowing.
(c)[6]
Analyse three ways in which a country’s HDI value could rise.
(d)[8]
Discuss whether a government should encourage some of the country’s people to work abroad.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Money spent on food rises” …