Economics 2281 · O Level · Living standards

Living standards — practice question

Australia’s economic growth rate has declined in recent years. Its Human Development Index (HDI), by contrast, is high, and in 2016 Australia had the second highest HDI in the world. The Australian government wants the country’s birth rate to increase from a low level of 12.1 in 2016. A growing share of Australian children attend private sector schools. Their parents must pay a fee for them to go to these schools.
(a)[2]

Identify the distinction between economic growth and recession.

(b)[4]

Explain how the HDI is used to compare living standards across countries.

(c)[6]

Analyse the effects of an increase in a country’s birth rate.

(d)[8]

Discuss whether parents ought to pay a fee for sending their children to school.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Economic growth means that GDP rises

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