Syllabus Edition

First teaching 2025

First exams 2027

Living Standards (Cambridge (CIE) O Level Economics): Exam Questions

Exam code: 2281

2 hours43 questions
1
1 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.

2
1 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

3
1 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

4
1 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

5
1 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

1
1 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.

2
1 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.

3
1 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

4
1 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.

5
1 mark

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

  • gender inequality

  • life expectancy at birth

  • political freedom

  • the impact of pollution

6
1 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

7
1 mark

Which is a disadvantage of using GDP per head as a measure of living standards?

  • it measures unemployment

  • it does not show income distribution

  • it measures inflation

  • it ignores population size

8
1 mark

Which combination of indicators is included in the Human Development Index (HDI)?

  • GDP per head, adult literacy, unemployment rate

  • GDP per head, life expectancy, education levels

  • GDP per head, balance of trade, life expectancy

  • GDP per head, infant mortality, education levels

9
1 mark

The table shows GDP and population data.

Country

GDP ($bn)

Population (m)

A

400

200

B

900

300

C

600

100

D

1200

600

Which country has the highest GDP per head?

  • Country A

  • Country B

  • Country C

  • Country D

1
1 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

    2
    1 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

      3
      1 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

        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

        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