Living Standards (CIE IGCSE Economics)

Topic Questions

11 mark

Why is the Human Development Index (HDI) a better indicator of comparative living standards than Gross Domestic Product (GDP) per head?

  • It includes international trade.

  • It includes more measures of living standards.

  • It is measured in money terms.

  • It is more directly linked to economic growth.

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21 mark

The Human Development Index (HDI) ranks human development in countries from 0 (lowest) to 1 (highest).
What does the calculation of HDI not take into consideration?

  • estimate of life expectancy at birth

  • information on the number of years of schooling

  • regional inequalities of investments in human capital

  • standard of living linked to income per head

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31 mark

What is included in the Human Development Index (HDI) of a country?

  • level of net immigration

  • life expectancy at birth

  • population size

  • rate of population growth

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41 mark

One of the indicators of living standards is the Human Development Index (HDI).

What is not taken into consideration when calculating the HDI?

  • education

  • income per head

  • level of savings

  • life expectancy

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51 mark

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

  • adult literacy rate

  • doctors per 1000 people

  • unemployment rate

  • years spent in education

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11 mark

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

  GDP inflation population

A

B

C

D

fall

fall

rise

rise

fall

rise

fall

rise

rise

rise

fall

fall

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21 mark

Given the following information, which country is most likely to have the highest standard of living?

    birth
rate
death
rate
life
expectancy
infant
mortality rate

A

B

C

D

Bangladesh

Bhutan

Botswana

Brunei

27

36

31

25

10

14

21

5

58

53

40

72

93

107

57

22

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31 mark

The table shows some economic indicators.

Which combination of indicators is most likely to represent a developed country?

  size of primary sector
(% of GDP)
birth rate
(births per 1000)
literacy rate
(% of population)

A

B

C

D

3

3

27

33

10

22

32

35

98

65

56

70

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4
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1 mark

Why is real GDP per capita often used as an indicator of living standards?

  • It reflects the total population of a country

  • It considers only the economic output of a nation

  • It takes into account changes in both GDP and inflation

  • It provides insights into the average income of citizens

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5
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1 mark

If a country's real GDP per capita has increased over the past decade, what can we conclude about its living standards?

  • Living standards have definitely improved

  • Living standards have remained constant

  • Living standards may have improved, but other factors need to be considered

  • Living standards have likely declined

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11 mark

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

  • Education and healthcare are important contributors to the standard of living.

  • GDP per head only measures development.

  • Inequality can only be measured by HDI.

  • Literacy rates are not an effective measure of the standard of living.

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21 mark

Why is the Human Development Index (HDI) a better measure of living standards than GDP per head?

  • It takes into account changes in output.

  • It takes into account changes in population.

  • It takes into account health and education data.

  • It takes into account inflation.

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31 mark

What are the components of the Human Development Index (HDI)?

  • life expectancy at birth, expected years of schooling, GDP

  • life expectancy at birth, expected years of schooling, GDP per head

  • population growth, adult literacy rate, GDP per head

  • population size, expected years of schooling, number of doctors per head

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41 mark

Why might GDP per head be underestimated in a developed economy?

  • It does not account for changes in population.

  • It does not include financial services output.

  • It does not include the hidden economy.

  • It does not take into account the primary sector.

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51 mark

What is included in the Human Development Index (HDI)?

  • gender inequality

  • life expectancy at birth

  • political freedom

  • the impact of pollution

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61 mark

What would not increase the Human Development Index (HDI) of a country?

  • an increase in the level of car ownership

  • an increase in life expectancy at birth

  • a rise in the GDP per head

  • a rise in the number of years of schooling

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