5.
Development Economics
5.1 Living standards
1. Identify two components of the HDI. (2) TB
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2. Identify two influences on living standards. (2) TB
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3. Explain why real GDP per head is a better measure of the standard of living in a country than
nominal GDP. (4) TB
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4. Discuss whether or not HDI is a good measure of living standards. (8) TB
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5. Analyse the causes of differences in the level of income between countries. [6]
6. Analyse how living standards in Nigeria compare with living standards in Ethiopia in 2017. [4]
7. Explain two reasons for differences in living standards between countries. [4] ON2022/p23/Q5b
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8. Analyse the effects on income distribution and tax revenue of an increase in indirect taxes. [6]
ON2020/P22/Q3c
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9. Discuss whether or not having a lower GDP will be a disadvantage to an economy. [8]
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10. Discuss whether or not a decrease in the average hours worked is likely to have an impact on a
country’s HDI. (6) TB
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11. Analyse how a rise in labour productivity can increase living standards. (6) TB
12. Discuss whether or not the discovery of oil is likely to increase living standards in Guyana. [6]
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