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.
(a)[2]
Define what is meant by the ‘Human Development Index’ (HDI).
(b)[4]
Explain why the concept of opportunity cost matters when deciding how resources should be allocated.
(c)[6]
Analyse how a fall in the rate of interest could reduce poverty.
(d)[8]
Discuss whether fast economic growth always raises living standards.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “An indicator of living standards” …