Living standards

A country has the highest GDP per head in the world. What is this information most likely to indicate about the country?

Feb/March 2019

Which set of changes is most likely to cause living standards in a country to fall?

Feb/March 2020

Which country is most likely to have the highest standard of living?

Feb/March 2021

The table presents expenditure in the leisure sector of a country in $1995$, $1999$ and $2005$. What conclusions can be drawn from the table?

Feb/March 2023

The table gives the percentage (%) of income received by different household income groups in a country in two years. What conclusion can be drawn about the change across the period?

Feb/March 2024

In rural parts of developing countries, farmers produce food mainly for their own use. Why could this make GDP a poor indicator of the standard of living in those countries?

May/June 2015

The Human Development Index (HDI) measures more than average incomes alone. Which two other measures does it also include?

May/June 2015

Which combination of changes is most likely to cause living standards in a country to fall?

May/June 2015

To calculate GDP per head, Gross Domestic Product (GDP) is divided by what?

May/June 2016

A nation records a very high Gross Domestic Product and has a small population, yet its standard of living is low. What could be the reason for this low standard of living?

May/June 2016

The table provides information on three economic indicators for four countries. What can be concluded from this information?

May/June 2016

Which country is most likely to have the highest standard of living?

May/June 2016

Besides Gross Domestic Product per capita, which other measures are part of the Human Development Index?

May/June 2016

A nation has a low GDP and a large population, yet it is ranked relatively highly on the HDI. Which combination could be present in the country?

May/June 2017

The table provides details about four countries. Which country is most likely to have the highest standard of living?

May/June 2017

What is most likely to indicate that a country is experiencing an increase in economic development?

May/June 2017

As more people become billionaires, other people are still living in poverty. Some enjoy luxuries while others do not even have the essentials. To help more people reach a minimum living standard, some economists support the redistribution of income.

May/June 2017

Over recent decades, living standards have improved in several different ways. From 1990 to 2015, more than 2.5 billion people across the world gained access to improved water, and the share of undernourished people dropped from 24% to 13%. Different countries have advanced at different speeds, and this is shown in their Human Development Index (HDI) rankings.

May/June 2017

A developing country's government permits a multinational mining company to extract minerals so that the local population's standard of living can be raised. Which action by the multinational company (MNC) would not result in a higher standard of living for the local people?

May/June 2018

A developing country’s government permits a multinational mining company to extract minerals so that the living standards of local people can be raised. Which action taken by the multinational company (MNC) will not improve the living standards of the local people?

May/June 2018

The government of a developing country gives a multinational mining company permission to extract minerals so that the living standards of the local population can be raised. Which action taken by the multinational company (MNC) would not result in a higher standard of living for the local people?

May/June 2018

Which factor would not lead to an increase in a country’s Human Development Index (HDI)?

May/June 2019

Using the information provided, which country is most likely to have the highest standard of living?

May/June 2019

Why is the Human Development Index (HDI) a more effective indicator of living standards than GDP per head?

May/June 2019

What generally occurs as a developing country grows more developed?

May/June 2019

Using the information provided, which country is most likely to have the highest standard of living?

May/June 2019

What factors could cause GDP per head to be underestimated in a developed economy?

May/June 2019

Using the information below, which country is most likely to have the highest standard of living?

May/June 2019

Gross Domestic Product (GDP) is a more reliable way to compare living standards when it is adjusted to allow for the impact of

May/June 2021

Gross Domestic Product (GDP) is a more appropriate indicator of comparative living standards when it has been adjusted to allow for the effects of

May/June 2021

Gross Domestic Product (GDP) provides a more accurate indicator of comparative living standards if it is adjusted to allow for the effects of

May/June 2021

Section B In Cairo, the capital city of Egypt, close to one million people live in crowded and unhealthy housing. Unemployment is one reason that many people are missing basic necessities, including adequate housing. In 2019, almost 10% of Cairo’s workers did not have a job. By contrast, some other people in Cairo live in luxury, in houses worth more than $1 million. Many of Cairo’s rich adults were brought up in rich families.

May/June 2021

Latvia ranks among the most rapidly expanding economies in Europe. Even though GDP per head remains under the European average, it is closing the gap fast. Living standards are rising. Meanwhile, lower borrowing has lessened the risk of high inflation. The labour market is improving too, with unemployment falling. However, there are worries that balance of payments stability may be weaker.

May/June 2021

Why do living standards decrease during a recession?

May/June 2022

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

May/June 2022

The table presents the way three people, X, Y and Z, use their income. What is the most likely order of income, from the lowest to the highest, for these three people?

May/June 2022

The table presents statistics for four countries, A, B, C and D. From the data given, which country has the lowest standard of living?

May/June 2024

What is indicated by the Human Development Index (HDI)?

May/June 2024

In recent years, labour mobility, the number of women in the labour force and GDP have all risen in Bangladesh. In 2019, Bangladesh’s central bank authorised three additional commercial banks. In that year, women earned, on average, 77% of men’s pay in Bangladesh. The nation recorded the world’s seventh highest economic growth rate, with GDP increasing by 7.4%.

May/June 2024

Background material: Indonesia and climate change Indonesia fact file (2021) Indonesia GDP: $1100bn Indonesia economic growth rate: 3.7% Jakarta GDP: $300bn Jakarta economic growth rate: 2.4% From 1945 until 2024, Jakarta served as Indonesia’s capital city, and it is among the fastest-sinking and most polluted cities in the world. A sharp drop in real Gross Domestic Product (GDP) per head is forecast for the city, which may bring about a decline in living standards. The free market can be held responsible for air pollution and rising sea levels in parts of Indonesia. Schools and other buildings have been flooded and roads have been damaged. Floods have also caused a rise in diseases spread by water and mosquitoes that breed in water. Farmland has gone underwater, removing an important income source for many farmers. As a result, internal migration (people moving between regions of the same country) has taken place. For instance, some farmers have relocated to places where climate change has made it possible to grow different crops. Regions that people have left have faced less pressure on both natural resources and local government resources. Even so, such movements could cause whole communities to break down and widen inequality between workers who can move more easily and those who cannot. Governments across the world have responded to climate change by increasing spending on the environment. Table 1.1 gives the GDP and environmental government spending of selected countries in 2019. Table 1.1 GDP and government spending on the environment of selected countries in 2019: France - GDP $2730bn, government spending on the environment $27.03bn Indonesia - GDP $1120bn, government spending on the environment $2.58bn Japan - GDP $5150bn, government spending on the environment $58.20bn Switzerland - GDP $730bn, government spending on the environment $4.02bn Thailand - GDP $540bn, government spending on the environment $0.32bn The Indonesian government has also reacted to environmental concerns by moving its capital city. Nusantara is set to replace Jakarta as the capital in 2024. The new city is expected to cost $32.5 billion to build. Besides creating employment, this city could also lessen inequality between Indonesia’s different regions. Jakarta is on Java, which is a wealthier region than Kalimantan. Nusantara, the new capital, will be situated in the Kalimantan region. In addition, the government plans for the new capital to be carbon-neutral. However, critics of the project argue that the expense is excessive. They also say the scheme will favour only a small number of rich and influential people.

May/June 2024

The table presents the Human Development Index (HDI) value for a country in two years. Which of the following would not account for the change in the HDI value?

May/June 2025

In rural parts of developing countries, farmers produce food for their own use. Why could this make GDP a poor indicator of the standard of living in those countries?

May/June 2025

A government chose to raise its expenditure on constructing schools and hospitals. Which objective of government policy is most likely to be achieved by this rise?

Oct/Nov 2015

To improve Gross Domestic Product as a measure for comparing living standards, it needs to be adjusted by

Oct/Nov 2015

Why may real GDP per person not be a reliable indicator of living standards in developing countries?

Oct/Nov 2015

The wealthiest $60\%$ of the population in a developed economy experienced higher income. Which row is correct as a consequence of this rise?

Oct/Nov 2015

GDP per head is often seen as a weak indicator of living standards because it leaves out

Oct/Nov 2015

When low-income earners are compared with high-income earners, which statement is correct?

Oct/Nov 2015

On average, people in Norway work just 27 hours each week. They also enjoy more holidays, and for longer periods, than workers in most other countries. In 2013, Norway had the world’s second-highest productivity. It was also placed first in the Human Development Index (HDI). Compared with many other countries, Norway has experienced almost full employment in recent years.

Oct/Nov 2015

Why is nominal Gross Domestic Product not a suitable measure for comparing the standard of living in a country across two years?

Oct/Nov 2016

Which of the following gives the correct examples of income and wealth?

Oct/Nov 2016

Nazmin Uddin works as a secretary in a local office for three days each week. She lives with her parents in a small apartment. Meer Ali is the owner of a successful fitness centre that employs about twenty people. He owns a large house. Which statement is the most likely to be correct?

Oct/Nov 2016

Why is the Human Development Index (HDI) frequently viewed as a superior measure of living standards compared with Gross Domestic Product (GDP) per head?

Oct/Nov 2017

Why is the Human Development Index (HDI) often judged to be a superior measure of living standards compared with Gross Domestic Product (GDP) per head?

Oct/Nov 2017

Why is the Human Development Index (HDI) often viewed as a more useful measure of living standards than Gross Domestic Product (GDP) per head?

Oct/Nov 2017

Moldova’s population stands at 3.5 million. It is among Europe’s poorest countries, with fairly low living standards. In 2015, the economy went into recession and its inflation rate doubled. Moldova’s central bank raised the interest rate from 8.5% to 15.5%.

Oct/Nov 2017

The United Nations (UN) has outlined development goals for countries to reach by 2050. These goals are to: • conserve natural resources • provide education for everyone • eliminate poverty everywhere • encourage sustained economic growth

Oct/Nov 2018

For what reason was the Human Development Index (HDI) introduced as a measure of the standard of living?

Oct/Nov 2019

What is most likely to rise as a country develops further?

Oct/Nov 2019

A musician can choose to perform in an orchestra located in either Germany or England. Which pairing of income level and cost of living would be most likely to lead her to select the German orchestra?

Oct/Nov 2019

Which indicator would be used in the Human Development Index (HDI) for a country?

Oct/Nov 2019

A medicines manufacturer in Nigeria is planning to expand, and this should raise the industry’s contribution to the country’s Gross Domestic Product (GDP). If this firm grows, Nigeria may become less reliant on imported medicines and medicines may also become more affordable. However, to achieve success, the firm will need to increase what it spends on research and development.

Oct/Nov 2019

Australia’s economic growth rate has declined in recent years. Its Human Development Index (HDI), however, is high, and in 2016 Australia had the second highest HDI in the world. The Australian government hopes that the country’s birth rate will increase from a low of 12.1 in 2016. A rising share of Australian children attend private sector schools. Their parents must pay a fee for them to go to these schools.

Oct/Nov 2019

The Human Development Index (HDI) is one measure used to indicate living standards. What is excluded from the calculation of the HDI?

Oct/Nov 2020

The table presents data for four countries, A-D. Which country has the lowest standard of living?

Oct/Nov 2021

The table presents statistics for four countries, A-D. Which country has the lowest standard of living?

Oct/Nov 2021

The table presents statistics for four countries, A-D. Which country has the lowest standard of living?

Oct/Nov 2021

A musician can take up an orchestra position in either Germany or England. Which pairing of income and cost of living is most likely to make her decide on the German orchestra?

Oct/Nov 2022

The table gives the real GDP and the population for four countries. Which country has the greatest real GDP per head?

Oct/Nov 2022

Which statement about different income groups is accurate?

Oct/Nov 2022

A musician can accept a position with an orchestra in either Germany or England. Which mix of income and cost of living would be most likely to lead her to select the German orchestra?

Oct/Nov 2022

The table gives the percentage changes in earnings and consumer prices for four countries over one year. Which country is most likely to have seen the largest rise in real income during that year?

Oct/Nov 2022

A musician can decide to perform with an orchestra in either Germany or England. Which combination of income and cost of living would be most likely to make her select the German orchestra?

Oct/Nov 2022

Which combination of government measures is most likely to increase the living standards of lower income groups in an economy?

Oct/Nov 2022

Source material: Mauritius’s global reach Mauritius fact file 2019 Tertiary sector as a % of GDP: 76% Total GDP: $14.2 billion Population: 1.26 million Mauritius is an island country in the Indian Ocean. Mauritius’s economy has expanded since it moved away from a primary-sector-based economy and became one dominated by the tertiary sector. This economic growth did more than raise income per head; it also improved healthcare in Mauritius. Life expectancy has risen and the infant mortality rate (number of infant deaths per thousand births) has dropped sharply. Mauritius is famous for many tourist attractions, such as its stunning beaches, and more than a million tourists arrive each year. Visitors from most countries need only a passport to enter Mauritius because a visa is not needed. The tourism industry not only provides many jobs, it also increases tax revenue for the government. Tax revenue from tourism is used to pay for development projects that help the whole population, not only people employed in tourism. There are also over 32 000 foreign firms located in Mauritius. Firms established in Mauritius because of its rapid growth and political stability, as well as the limited regulations needed to start and operate a firm. The government seeks to draw in more investment by supplying high-quality infrastructure. In 2019, the government spent more than $1 billion on infrastructure development. It improved the island’s international airport, seaport, and public transport links across the island. This may lower the cost of doing business in Mauritius and enlarge a firm’s market size. However, critics fear that the money has gone into projects that have helped the economy less than spending on education or healthcare would have done. The government is also searching for fresh sources of economic growth, including greater international trade and foreign investment. International trade is viewed as essential to economic growth. Table 1.1 gives the percentage of international trade to GDP and GDP per head in selected countries in 2019. The Mauritian government supports both inward and outward investment. By country, Mauritius is among the biggest foreign investors in India. Mauritian firms intend to invest in the new Special Economic Zones (SEZs) being established in Kenya. Outward investment allows Mauritian firms to enter new markets in other countries, buy imports at a lower cost and gain greater access to foreign technology. On the other hand, profits earned overseas may not be reinvested in the domestic economy. Any changes in the international economy may also influence possible profits.

Oct/Nov 2022

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

Oct/Nov 2023

The table presents the real GDP per head for a country in 2021 and 2022. 2021: $\$20000$ 2022: $\$21000$ What is most likely to have changed between 2021 and 2022?

Oct/Nov 2023

The table presents some economic indicators. Which rise in the first indicator is most likely to cause a rise in the second indicator?

Oct/Nov 2023

The table presents the distribution of income, as measured by GDP, for three countries in one year. What conclusion can be drawn from the table?

Oct/Nov 2024

What is Gross Domestic Product (GDP) divided by to work out GDP per head?

Oct/Nov 2024

If a government raises the rate of progressive income tax and also increases its expenditure on hospitals, what is likely to happen to income distribution and to living standards?

Oct/Nov 2024

During 2021, demand for several South African products both expanded and contracted. In that same year, a South African court prevented a multinational company (MNC) from carrying out oil exploration along the South African coastline. South Africa also saw output rise, mainly because of growth in its tertiary sector. Even so, unemployment stood at 35%, far short of full employment.

Oct/Nov 2024