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Topical›Economics 0455›Economic development›Living standards›Paper 1

Living standards — Paper 1 · IGCSE Economics 0455

5.1· 166 questions · 166 marks · 199 min · 2006–2025· Multiple choice

Every Cambridge IGCSE Economics Paper 1 question on living standards, laid out as 40 A4 pages with the mark scheme below. Nothing is left out. Free to read, no account.

QuestionsMark scheme
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Questions40 pages

Question 1: The table gives information on standards of living in four countries. life expectancy at birth adult literacy % labour force in (years) rat…Question 2: The table shows the Gross Domestic Product (GDP) and population of four countries. Which country is likely to have the lowest standard of l…Question 3: What is a reason for collecting national income statistics? A to calculate population changes B to compare standards of living C to fix exc…Question 4: In rural areas in developing countries women often do unpaid work on traditional activities. Why might this mean that the GDP is not a good…1 / 40
Question 5: In developed economies, as a person’s real income rises, a lower proportion of that income is usually spent on A food. B holidays. C leisur…Question 6: Which situation would definitely cause a fall in real incomes? price level money income level A falls rises B falls unchanged C rises rises…Question 7: Changes in the standard of living of a country are best measured by changes in A national income. B national income per head. C real nation…Question 8: What is likely to be an advantage of economic growth? A The country’s resources will be depleted. B The price level will increase. C The ra…Question 9: Which of the following is most likely to be used as a measure of living standards? A the balance of trade B the consumer price index C the …Question 10: Real Gross Domestic Product per head is often used as a measure of the change in average living standards. What reduces its effectiveness i…2 / 40
Question 11: What is likely to increase with economic growth? A cyclical unemployment B income per head C the budget deficit D the conservation of natur…Question 12: The table shows the percentage changes in earnings and consumer prices for four countries for one year. Which country is likely to have exp…Question 13: Which statement about economic development is correct? A A country needs more than a high GDP to be considered developed. B A country which…Question 14: Why is the Human Development Index (HDI) a better indicator of comparative living standards than Gross Domestic Product (GDP) per head? A I…Question 15: Why is the Human Development Index (HDI) a better indicator of comparative living standards than Gross Domestic Product (GDP) per head? A I…3 / 40
Question 16: Gross Domestic Product (GDP) per capita is commonly used as an indicator of the comparative level of development in different countries. Wh…Question 17: In 2008, the US had a higher GDP per head than Iceland, but a lower Human Development Index ranking than Iceland. What could explain this d…Question 18: The table shows four countries in 2007. Which country is most likely to have the lowest standard of living? country GDP (US$ billion) popul…Question 19: The table shows four countries in 2007. Which country is most likely to have the lowest standard of living? country GDP (US$ billion) popul…Question 20: The table shows four countries in 2007. Which country is most likely to have the lowest standard of living? country GDP (US$ billion) popul…4 / 40
Question 21: A musician has a choice of playing for an orchestra in either England or Germany. Which combination of incomes and cost of living is most l…Question 22: Why may GDP not be a good measure to compare the standard of living of two countries? A It does not include government expenditure. B It do…Question 23: The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of livi…Question 24: Why may GDP not be a good measure to compare the standard of living of two countries? A It does not include government expenditure. B It do…5 / 40
Question 25: The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of livi…Question 26: A musician has a choice of playing for an orchestra in either England or Germany. Which combination of incomes and cost of living is most l…Question 27: Why may GDP not be a good measure to compare the standard of living of two countries? A It does not include government expenditure. B It do…Question 28: The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of livi…6 / 40
Question 29: What is likely to happen as a developing country becomes more developed? A A higher percentage of children will attend school. B Infant mor…Question 30: What is a long-term advantage of economic growth? A employment falls B incomes rise C prices rise D savings fallQuestion 31: The table gives information about four countries. Which country is likely to have the lowest standard of living? life expectancy GNP per he…Question 32: The table gives information about four countries. Which country is likely to have the lowest standard of living? life expectancy GNP per he…Question 33: What is a long-term advantage of economic growth? A employment falls B incomes rise C prices rise D savings fall7 / 40
Question 34: The table gives information about four countries. Which country is likely to have the lowest standard of living? life expectancy GNP per he…Question 35: The inhabitants of an economy experience an increase in their cost of living, their living standards and their leisure time. Which combinat…Question 36: The table shows the percentages of consumer spending on different items in four countries, which have similar geographical conditions and c…Question 37: The table shows the percentages of consumer spending on different items in four countries, which have similar geographical conditions and c…8 / 40
Question 38: In China the government is concerned about the level of poverty and the need for more resources in the poorer regions of the country. As a …Question 39: The table shows the percentages of consumer spending on different items in four countries, which have similar geographical conditions and c…Question 40: Which combination of changes is most likely to result in a rise in the average living standard in a country? Gross Domestic general price p…Question 41: A government wishes to raise the general standard of living in its country. In the short run, which policy would be the most likely to achi…9 / 40
Question 42: The table shows the change in real incomes for a number of occupations between 1978 and 2008. change in real income occupation % doctors 15…Question 43: The table shows the change in real incomes for a number of occupations between 1978 and 2008. change in real income occupation % doctors 15…Question 44: A government wishes to raise the general standard of living in its country. In the short run, which policy would be the most likely to achi…10 / 40
Question 45: A government wishes to raise the general standard of living in its country. In the short run, which policy would be the most likely to achi…Question 46: Which changes usually result when a country develops and is able to provide free health care and good living conditions? worker birth rate …Question 47: What is not likely to be used to measure the difference in the standard of living between countries? A Gross Domestic Product per head B Hu…Question 48: The table gives information about four countries. Which country has the lowest standard of living? life % of labour GDP per head force in e…Question 49: In South Africa, the rate of consumer spending is relatively high compared with other developing countries. However, the unemployment rate …11 / 40
Question 50: Why is the Human Development Index (HDI) often considered to be better than GDP per head as a measure of living standards? A GDP per head e…Question 51: The table gives information about four countries. Which country has the lowest standard of living? life % of labour GDP per head force in e…Question 52: The table gives information about four countries. Which country has the lowest standard of living? life % of labour GDP per head force in e…Question 53: The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of livi…12 / 40
Question 54: The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of livi…Question 55: As a country develops, its provision of medical care for babies and old people improves. Why might this cause a problem in raising living s…Question 56: The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of livi…Question 57: In rural areas in developing countries, farmers grow food for their own consumption. Why might this mean that the GDP is a weak measure of …13 / 40
Question 58: The Human Development Index (HDI) measures more than just average incomes. What are two additional measures it includes? A life expectancy …Question 59: In 2013, subsistence farming, which involved a large percentage of the population, was a significant activity in the Philippines and Indone…Question 60: Which combination of changes is most likely to result in a fall in living standards in a country? GDP inflation population A fall fall rise…Question 61: When elderly people retire from work, they may receive a pension income that is lower than their previous income. How is the proportion of …Question 62: The Human Development Index can be used to measure human development in countries. Which measure would not be part of its calculation? A in…14 / 40
Question 63: The table shows how three people spend their income. person R person S person T food and clothing 20% 45% 35% entertainment 40% 35% 40% lux…Question 64: To make Gross Domestic Product a better measure of comparative living standards it needs to be adjusted by A deducting the effects of expor…Question 65: The table shows the percentage change in earnings and consumer prices for four countries for one year. Which country will have experienced …Question 66: How is a sharp rise in the price of oil likely to be seen by different oil-consuming countries? oil-consuming countries with oil-consuming …15 / 40
Question 67: Which item does the Human Development Index (HDI) of a country include, in addition to real GDP per head and life expectancy at birth? A ex…Question 68: Why might real GDP per head not be a good indicator of the standard of living in developing countries? A It does not account for inflation.…Question 69: The table shows the percentage changes in earnings and consumer prices for four countries for one year. Which country is likely to have exp…Question 70: The table shows how three people spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% entertainment and le…16 / 40
Question 71: A government decides to make two changes to its taxation policies. It lowers the tax on petrol and raises the tax on food. How do these cha…Question 72: What is Gross Domestic Product (GDP) divided by to calculate GDP per head? A net migration B the birth rate C the total population D the wo…Question 73: Why may the figure calculated for a developing country’s Gross Domestic Product be inaccurate? A There are unused resources. B There is a h…Question 74: The table gives information on four countries. Which country is likely to be most developed? Gross Domestic life population Product expecta…17 / 40
Question 75: The table shows how three people spend their income. person X person Y person Z food, clothing and housing 35% 50% 20% entertainment and le…Question 76: A country has a very high Gross Domestic Product and a small population but has a low standard of living. What may be the cause of this low…Question 77: Which country is likely to have the highest standard of living? infant mortality birth rate death rate life expectancy rate A 41 20 31 49 B…Question 78: The table shows how three people spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% entertainment and le…18 / 40
Question 79: Which measures, in addition to Gross Domestic Product per capita, are included in the Human Development Index? A average earnings and inequ…Question 80: Why is nominal Gross Domestic Product not a good measure to compare the standard of living in a country between two years? A It does not ac…Question 81: Which outcome is least likely to be found with greater economic development? A A greater percentage of the population are highly educated. …Question 82: The table shows some economic indicators. Which increase in the first indicator is most likely to lead to an increase in the second indicat…Question 83: This table shows how three people spend their income. person X person Y person Z food and housing 60% 20% 30% travel and leisure 20% 40% 30…19 / 40
Question 84: Which combination of changes in national output and population would cause an increase in GDP per head? national output population A decrea…Question 85: A country has a low GDP and a large population but ranks relatively highly on the HDI. Which combination may exist in the country? provisio…Question 86: In a developing country real incomes have risen. Which situation would definitely have caused this? money price level incomes A fell fell B…Question 87: The table gives information about four countries. Which country is likely to have the highest standard of living? % of labour force GDP per…20 / 40
Question 88: In South Africa, the number of skilled workers is relatively low. However, average wages in South Africa are double the average wage in Bra…Question 89: What is the change in GDP per head, after taking account of price increases (real change), between 2000 and 2013? population consumer price…Question 90: What is likely to show that a country has a rising level of economic development? A a reduced inflation rate B a reduced national income pe…Question 91: Why is the Human Development Index (HDI) often considered to be better than Gross Domestic Product (GDP) per head as a measure of living st…Question 92: Why is the Human Development Index (HDI) often considered to be better than Gross Domestic Product (GDP) per head as a measure of living st…21 / 40
Question 93: Why is the Human Development Index (HDI) often considered to be better than Gross Domestic Product (GDP) per head as a measure of living st…Question 94: The table shows the rice yield in four countries. rice yield country (kilos per hectare) Japan 64 China 53 Bangladesh 20 Thailand 20 What m…Question 95: The table shows the rice yield in four countries. rice yield country (kilos per hectare) Japan 64 China 53 Bangladesh 20 Thailand 20 What m…22 / 40
Question 96: The government of a developing country allows a multinational mining company to mine minerals in order to improve the standard of living of…Question 97: The table shows the rice yield in four countries. rice yield country (kilos per hectare) Japan 64 China 53 Bangladesh 20 Thailand 20 What m…Question 98: The table shows how three people (X, Y and Z) spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% enterta…23 / 40
Question 99: A country has the highest GDP per head in the world. What is this information most likely to suggest about the country? A It has the world’…Question 100: A developing country starts to show increases in economic growth. What is most likely to occur? A a reduction in imports B a reduction in t…Question 101: What would not increase the Human Development Index (HDI) of a country? A an increase in the level of car ownership B an increase in life e…Question 102: Given the following information, which country is most likely to have the highest standard of living? birth death life infant rate rate exp…Question 103: Why is the Human Development Index (HDI) a better measure of living standards than GDP per head? A It takes into account changes in output.…24 / 40
Question 104: Given the following information, which country is most likely to have the highest standard of living? birth death life infant rate rate exp…Question 105: The diagram shows percentage (%) changes in prices and wages over time. 2.0 prices % change in wages 1.5 and prices 1.0 0.5 wages 0 2000 20…Question 106: Why might GDP per head be underestimated in a developed economy? A It does not account for changes in population. B It does not include fin…Question 107: What is included in the Human Development Index (HDI)? A gender inequality B life expectancy at birth C political freedom D the impact of p…25 / 40
Question 108: Given the following information, which country is most likely to have the highest standard of living? birth death life infant rate rate exp…Question 109: The table shows how three people (X, Y and Z) spend their income. person X person Y person Z food, clothing and housing 35% 50% 20% enterta…Question 110: What are the components of the Human Development Index (HDI)? A life expectancy at birth, expected years of schooling, GDP B life expectanc…Question 111: The table shows how three people (X, Y and Z) spend their income. person X person Y person Z food, clothing and housing 35% 50% 20% enterta…26 / 40
Question 112: A musician has a choice of playing for an orchestra in either Germany or England. Which combination of incomes and cost of living is most l…Question 113: Why was the Human Development Index (HDI) introduced as a measure of the standard of living? A Education and healthcare are important contr…Question 114: What is most likely to increase as a country becomes more developed? A average household income B average size of family C infant mortality…Question 115: A musician has a choice of playing for an orchestra in either Germany or England. Which combination of incomes and cost of living is most l…Question 116: Which indicator would be included in the Human Development Index (HDI) for a country? A adult literacy rate B doctors per 1000 people C une…27 / 40
Question 117: The Human Development Index (HDI) ranks human development in countries from 0 (lowest) to 1 (highest). What does the calculation of HDI not…Question 118: Which combination of changes is most likely to result in a fall in living standards in a country? GDP inflation population A fall fall rise…Question 119: Which changes usually result when a country develops and is able to provide free healthcare and good living conditions? labour birth rate d…Question 120: People’s income decreases. How is the proportion spent on food and leisure likely to change? food leisure A decrease decrease B decrease in…28 / 40
Question 121: Real incomes have risen in a country. Which situation would definitely have caused this? money price level incomes A fell fell B fell rose …Question 122: Which changes usually result when a country develops and is able to provide free healthcare and good living conditions? labour birth rate d…Question 123: One of the indicators of living standards is the Human Development Index (HDI). What is not taken into consideration when calculating the H…Question 124: The table shows the percentage employment in the primary, secondary and service sectors in four countries. Which country is likely to be th…29 / 40
Question 125: The table shows some data about an economy. year 1 rate of inflation (%) 3.5 change in personal incomes (%) 2.5 What happened in year 1? A …Question 126: Which country is likely to have the highest standard of living? infant mortality birth rate death rate life expectancy rate A 41 20 31 49 B…Question 127: Gross Domestic Product (GDP) is a better measure of comparative living standards when it is adjusted for the effects of A exports and infla…Question 128: Gross Domestic Product (GDP) is a better measure of comparative living standards when it is adjusted for the effects of A exports and infla…Question 129: Gross Domestic Product (GDP) is a better measure of comparative living standards when it is adjusted for the effects of A exports and infla…30 / 40
Question 130: The table shows statistics for four countries, A–D. Which country has the lowest standard of living? average annual growth rate of populati…Question 131: What is the consequence of economic growth for individuals and for the economy? individuals the economy A increase in absolute poverty incr…Question 132: The table shows statistics for four countries, A–D. Which country has the lowest standard of living? average annual growth rate of populati…Question 133: The table shows statistics for four countries, A–D. Which country has the lowest standard of living? average annual growth rate of populati…31 / 40
Question 134: Which components, in addition to Gross Domestic Product (GDP) per head, are included in the Human Development Index (HDI)? A average earnin…Question 135: Why would standards of living fall when there is a recession? A The government would increase taxes to combat the recession. B The purchasi…Question 136: The table shows some economic indicators. Which increase in the first indicator is most likely to lead to an increase in the second indicat…Question 137: The table shows how three people, X, Y and Z, spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% enterta…Question 138: Which components, in addition to Gross Domestic Product (GDP) per head, are included in the Human Development Index (HDI)? A average earnin…32 / 40
Question 139: The table shows some economic indicators. Which increase in the first indicator is most likely to lead to an increase in the second indicat…Question 140: The table shows how three people, X, Y and Z, spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% enterta…Question 141: The diagram shows a production possibility curve (PPC) for country Z. Government policy is to move the economy from point X to point Y on t…33 / 40
Question 142: The table shows real GDP and population for four countries. Which country has the highest real GDP per head? real GDP population ($ billion…Question 143: The table shows the percentage changes in earnings and consumer prices for four countries for one year. Which country is likely to have exp…Question 144: The table shows the Human Development Index (HDI) for a country in two years. year HDI value 1 0.467 2 0.609 What would not explain the cha…Question 145: A musician has a choice of playing for an orchestra in either Germany or England. Which combination of incomes and cost of living is most l…34 / 40
Question 146: The table shows the percentage changes in earnings and consumer prices for four countries in one year. Which country is likely to have expe…Question 147: A musician has a choice of playing for an orchestra in either Germany or England. Which combination of incomes and cost of living is most l…Question 148: The table shows the percentage changes in earnings and consumer prices for four countries in one year. Which country is likely to have expe…Question 149: Which combination of government actions is most likely to raise the living standards of lower income groups in an economy? spending on pers…35 / 40
Question 150: Which statement is correct about the Human Development Index (HDI) and real GDP? A HDI includes exports and imports while real GDP does not…Question 151: The Peruvian government set itself the target of reducing the number of its population in poverty. What change does not indicate that the P…Question 152: The table shows the real GDP per head for a country in 2021 and 2022. 2021 2022 $20000 $21000 What is most likely to have changed between 2…Question 153: A small country whose only export is oil decides to reduce substantially the rate at which it extracts its limited oil reserves. What is th…36 / 40
Question 154: The table shows some economic indicators. Which increase in the first indicator is most likely to lead to an increase in the second indicat…Question 155: What is likely to increase with economic growth? A cyclical unemployment B income per head C the budget deficit D the stock of natural reso…Question 156: The table shows statistics for four countries A, B, C and D. According to the data provided, which country has the lowest standard of livin…Question 157: What does the Human Development Index (HDI) indicate? A economic development B level of unemployment C living standards D rate of inflation37 / 40
Question 158: The table shows the distribution of income as measured by GDP for three countries in a year. percentage of GDP received by each 20% of hous…Question 159: Workers in Switzerland earn more on average than workers in Mexico. What is a likely cause of this? A A greater percentage of workers in Sw…Question 160: What is Gross Domestic Product (GDP) divided by in order to calculate GDP per head? A the adult population B the dependent population C the…Question 161: What is the consequence of economic growth for individuals and for the economy? individuals the economy A increase in absolute poverty incr…38 / 40
Question 162: The table shows the Human Development Index (HDI) values for two countries. country HDI value X 0.90 Y 0.45 What might explain the differen…Question 163: The table shows the Human Development Index (HDI) value for a country in two years. year HDI value 1 0.467 2 0.609 What would not explain t…Question 164: In rural areas in developing countries, farmers grow food for their own consumption. Why might this mean that the GDP is a weak measure of …Question 165: The table shows the proportion of disposable income spent on three different goods by four different households. Which household is likely …39 / 40
Question 166: In one particular year, South Sudan’s population growth was 1.3% while its GDP growth was 2%. What is the most likely consequence of this? …40 / 40

Mark scheme166 answers

Answers below. Sit the paper first if you are practising.

Pastlit

Economics 0455 · Living standards — Paper 1

IGCSE · topical answer key — answer key (teacher use)

Question

Answer

Marks

1A1
2B1
3B1
4C1
5A1
6D1
7D1
8D1
9D1
10C1
11B1
12C1
13A1
14B1
15B1
16C1
17B1
18A1
19A1
20A1
21D1
22B1
23D1
24B1
25D1
26D1
27B1
28D1
29A1
30B1
31D1
32D1
33B1
34D1
35D1
36A1
37A1
38C1
39A1
40C1
41C1
42D1
43D1
44C1
45C1
46A1
47D1
48A1
49C1
1 / 4

Pastlit

Economics 0455 · Living standards — Paper 1

IGCSE · topical answer key — answer key (teacher use)

Question

Answer

Marks

50C1
51A1
52A1
53D1
54D1
55B1
56D1
57D1
58A1
59C1
60B1
61C1
62A1
63B1
64D1
65C1
66D1
67B1
68D1
69D1
70B1
71B1
72C1
73C1
74B1
75B1
76B1
77D1
78C1
79C1
80—1
81—1
82D1
83B1
84B1
85D1
86B1
87C1
88D1
89C1
90D1
91C1
92C1
93C1
94C1
95C1
96D1
97C1
98C1
2 / 4

Pastlit

Economics 0455 · Living standards — Paper 1

IGCSE · topical answer key — answer key (teacher use)

Question

Answer

Marks

99D1
100D1
101A1
102D1
103C1
104D1
105D1
106C1
107B1
108D1
109C1
110B1
111C1
112D1
113A1
114A1
115D1
116D1
117—1
118—1
119A1
120C1
121B1
122A1
123C1
124A1
125D1
126D1
127D1
128D1
129D1
130D1
131B1
132D1
133D1
134C1
135B1
136D1
137C1
138C1
139D1
140C1
141A1
142D1
143D1
144A1
145D1
146D1
147D1
3 / 4

Pastlit

Economics 0455 · Living standards — Paper 1

IGCSE · topical answer key — answer key (teacher use)

Question

Answer

Marks

148D1
149D1
150B1
151B1
152C1
153C1
154D1
155B1
156A1
157C1
158C1
159B1
160C1
161B1
162D1
163A1
164D1
165A1
166C1
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Questions as text

Q1 · The table gives information on standards of living in four countries 0455/11 May/June 2006

34 The table gives information on standards of living in four countries. life expectancy at birth adult literacy % labour force in (years) rate % agriculture Brazil 66.5 82.4 23 India 60.7 50.6 64 Rwanda 47.2 58.0 92 Uganda 44.7 59.7 85 On the basis of this information which country has the highest standard of living? A Brazil B India C Rwanda D Uganda

1 marks

Answer: A

This question in 0455/11 May/June 2006

Q2 · The table shows the Gross Domestic Product (GDP) and population of four countries 0455/11 Oct/Nov 2006

33 The table shows the Gross Domestic Product (GDP) and population of four countries. Which country is likely to have the lowest standard of living? GDP population ($ millions) (millions) A 2 000 1 B 10 000 10 C 80 000 20 D 90 000 30

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2006

Q3 · What is a reason for collecting national income statistics? 0455/11 May/June 2007

27 What is a reason for collecting national income statistics? A to calculate population changes B to compare standards of living C to fix exchange rates D to keep inflation low

1 marks

Answer: B

This question in 0455/11 May/June 2007

Q4 · In rural areas in developing countries women often do unpaid work on traditional… 0455/11 May/June 2007

29 In rural areas in developing countries women often do unpaid work on traditional activities. Why might this mean that the GDP is not a good measure of the standard of living in those countries? A The GDP does not include international trade. B The GDP only refers to companies in urban areas. C The work is not counted in GDP statistics. D The work is not economically important.

1 marks

Answer: C

This question in 0455/11 May/June 2007

Q5 · In developed economies, as a person’s real income rises, a lower proportion of that… 0455/11 Oct/Nov 2007

15 In developed economies, as a person’s real income rises, a lower proportion of that income is usually spent on A food. B holidays. C leisure activities. D personal transport.

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2007

Q6 · Which situation would definitely cause a fall in real incomes? 0455/11 Oct/Nov 2007

27 Which situation would definitely cause a fall in real incomes? price level money income level A falls rises B falls unchanged C rises rises D rises unchanged

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2007

Q7 · Changes in the standard of living of a country are best measured by changes in A national… 0455/11 Oct/Nov 2007

34 Changes in the standard of living of a country are best measured by changes in A national income. B national income per head. C real national income. D real national income per head.

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2007

Q8 · What is likely to be an advantage of economic growth? 0455/11 May/June 2008

29 What is likely to be an advantage of economic growth? A The country’s resources will be depleted. B The price level will increase. C The rate of employment will fall. D The standard of living will increase.

1 marks

Answer: D

This question in 0455/11 May/June 2008

Q9 · Which of the following is most likely to be used as a measure of living standards? 0455/11 May/June 2008

33 Which of the following is most likely to be used as a measure of living standards? A the balance of trade B the consumer price index C the government’s budget position D the real GDP per head

1 marks

Answer: D

This question in 0455/11 May/June 2008

Q10 · Real Gross Domestic Product per head is often used as a measure of the change in average… 0455/11 Oct/Nov 2008

34 Real Gross Domestic Product per head is often used as a measure of the change in average living standards. What reduces its effectiveness in representing this change? A It omits increases in the cost of living. B It omits increases in the general price level. C It omits increases in the hours people work. D It omits increases in the size of the population.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2008

Q11 · What is likely to increase with economic growth? 0455/11 May/June 2009

18 What is likely to increase with economic growth? A cyclical unemployment B income per head C the budget deficit D the conservation of natural resources

1 marks

Answer: B

This question in 0455/11 May/June 2009

Q12 · The table shows the percentage changes in earnings and consumer prices for four countries… 0455/11 May/June 2009

22 The table shows the percentage changes in earnings and consumer prices for four countries for one year. Which country is likely to have experienced the greatest increase in real income during the year? country earnings consumer prices A France +12.5 +9.5 B Japan +4.0 +2.0 C UK +8.5 +5.0 D Germany +4.0 +4.0

1 marks

Answer: C

This question in 0455/11 May/June 2009

Q13 · Which statement about economic development is correct? 0455/11 May/June 2009

27 Which statement about economic development is correct? A A country needs more than a high GDP to be considered developed. B A country which has rich reserves of raw materials is classed as developed. C A country will have no people living in poverty when it is developed. D A country with a trade surplus is considered to be developed.

1 marks

Answer: A

This question in 0455/11 May/June 2009

Q14 · Why is the Human Development Index (HDI) a better indicator of comparative living… 0455/11 May/June 2010

25 Why is the Human Development Index (HDI) a better indicator of comparative living standards than Gross Domestic Product (GDP) per head? A It includes international trade. B It includes more measures of living standards. C It is measured in money terms. D It is more directly linked to economic growth.

1 marks

Answer: B

This question in 0455/11 May/June 2010

Q15 · Why is the Human Development Index (HDI) a better indicator of comparative living… 0455/12 May/June 2010

26 Why is the Human Development Index (HDI) a better indicator of comparative living standards than Gross Domestic Product (GDP) per head? A It includes international trade. B It includes more measures of living standards. C It is measured in money terms. D It is more directly linked to economic growth.

1 marks

Answer: B

This question in 0455/12 May/June 2010

Q16 · Gross Domestic Product (GDP) per capita is commonly used as an indicator of the… 0455/12 May/June 2010

27 Gross Domestic Product (GDP) per capita is commonly used as an indicator of the comparative level of development in different countries. What does not lead to difficulties when using this as a comparison between countries? A different climatic conditions B different international exchange rates C different population growth rates D different rates of inflation

1 marks

Answer: C

This question in 0455/12 May/June 2010

Q17 · In 2008, the US had a higher GDP per head than Iceland, but a lower Human Development… 0455/11 Oct/Nov 2010

25 In 2008, the US had a higher GDP per head than Iceland, but a lower Human Development Index ranking than Iceland. What could explain this difference? A Average family size is higher in Iceland. B Life expectancy is higher in Iceland. C School enrolments are higher in the US. D The population of the US is larger.

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2010

Q18 · The table shows four countries in 2007 0455/11 Oct/Nov 2010

26 The table shows four countries in 2007. Which country is most likely to have the lowest standard of living? country GDP (US$ billion) population (million) A Bangladesh 206.7 153.5 B India 2989.1 1147.9 C Nigeria 292.7 138.3 D South Africa 467.1 43.8

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2010

Q19 · The table shows four countries in 2007 0455/12 Oct/Nov 2010

27 The table shows four countries in 2007. Which country is most likely to have the lowest standard of living? country GDP (US$ billion) population (million) A Bangladesh 206.7 153.5 B India 2989.1 1147.9 C Nigeria 292.7 138.3 D South Africa 467.1 43.8

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2010

Q20 · The table shows four countries in 2007 0455/13 Oct/Nov 2010

28 The table shows four countries in 2007. Which country is most likely to have the lowest standard of living? country GDP (US$ billion) population (million) A Bangladesh 206.7 153.5 B India 2989.1 1147.9 C Nigeria 292.7 138.3 D South Africa 467.1 43.8

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2010

Q21 · A musician has a choice of playing for an orchestra in either England or Germany 0455/11 May/June 2011

14 A musician has a choice of playing for an orchestra in either England or Germany. Which combination of incomes and cost of living is most likely to cause her to choose the German orchestra? Incomes and cost of living in Germany compared with those in England pre-tax (gross) income after-tax (net) income cost of living A higher higher higher B higher lower lower C lower higher higher D lower higher lower

1 marks

Answer: D

This question in 0455/11 May/June 2011

Q22 · Why may GDP not be a good measure to compare the standard of living of two countries? 0455/11 May/June 2011

25 Why may GDP not be a good measure to compare the standard of living of two countries? A It does not include government expenditure. B It does not take account of population size. C It is based on a sample ‘basket of goods’. D It only compares export prices with import prices.

1 marks

Answer: B

This question in 0455/11 May/June 2011

Q23 · The table shows statistics for four countries in southern Africa 0455/11 May/June 2011

28 The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of living? average annual population density real GDP life growth rate of per square per capita expectancy population (%) kilometre (US$) A 1.9 19 46 190 B 2.7 2 58 1700 C 3.7 45 59 210 D 4.2 89 44 190

1 marks

Answer: D

This question in 0455/11 May/June 2011

Q24 · Why may GDP not be a good measure to compare the standard of living of two countries? 0455/12 May/June 2011

24 Why may GDP not be a good measure to compare the standard of living of two countries? A It does not include government expenditure. B It does not take account of population size. C It is based on a sample ‘basket of goods’. D It only compares export prices with import prices.

1 marks

Answer: B

This question in 0455/12 May/June 2011

Q25 · The table shows statistics for four countries in southern Africa 0455/12 May/June 2011

27 The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of living? average annual population density real GDP life growth rate of per square per capita expectancy population (%) kilometre (US$) A 1.9 19 46 190 B 2.7 2 58 1700 C 3.7 45 59 210 D 4.2 89 44 190

1 marks

Answer: D

This question in 0455/12 May/June 2011

Q26 · A musician has a choice of playing for an orchestra in either England or Germany 0455/13 May/June 2011

13 A musician has a choice of playing for an orchestra in either England or Germany. Which combination of incomes and cost of living is most likely to cause her to choose the German orchestra? Incomes and cost of living in Germany compared with those in England pre-tax (gross) income after-tax (net) income cost of living A higher higher higher B higher lower lower C lower higher higher D lower higher lower

1 marks

Answer: D

This question in 0455/13 May/June 2011

Q27 · Why may GDP not be a good measure to compare the standard of living of two countries? 0455/13 May/June 2011

24 Why may GDP not be a good measure to compare the standard of living of two countries? A It does not include government expenditure. B It does not take account of population size. C It is based on a sample ‘basket of goods’. D It only compares export prices with import prices.

1 marks

Answer: B

This question in 0455/13 May/June 2011

Q28 · The table shows statistics for four countries in southern Africa 0455/13 May/June 2011

27 The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of living? average annual population density real GDP life growth rate of per square per capita expectancy population (%) kilometre (US$) A 1.9 19 46 190 B 2.7 2 58 1700 C 3.7 45 59 210 D 4.2 89 44 190

1 marks

Answer: D

This question in 0455/13 May/June 2011

Q29 · What is likely to happen as a developing country becomes more developed? 0455/13 May/June 2011

28 What is likely to happen as a developing country becomes more developed? A A higher percentage of children will attend school. B Infant mortality will rise. C Life expectancy will fall. D The agricultural sector will increase in importance.

1 marks

Answer: A

This question in 0455/13 May/June 2011

Q30 · What is a long-term advantage of economic growth? 0455/11 Oct/Nov 2011

20 What is a long-term advantage of economic growth? A employment falls B incomes rise C prices rise D savings fall

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2011

Q31 · The table gives information about four countries 0455/11 Oct/Nov 2011

26 The table gives information about four countries. Which country is likely to have the lowest standard of living? life expectancy GNP per head adult literacy country at birth (years) ($) (%) A Ethiopia 43 110 66 B India 59 350 43 C Nigeria 51 290 43 D Mozambique 45 80 39

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2011

Q32 · The table gives information about four countries 0455/12 Oct/Nov 2011

28 The table gives information about four countries. Which country is likely to have the lowest standard of living? life expectancy GNP per head adult literacy country at birth (years) ($) (%) A Ethiopia 43 110 66 B India 59 350 43 C Nigeria 51 290 43 D Mozambique 45 80 39

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2011

Q33 · What is a long-term advantage of economic growth? 0455/13 Oct/Nov 2011

25 What is a long-term advantage of economic growth? A employment falls B incomes rise C prices rise D savings fall

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2011

Q34 · The table gives information about four countries 0455/13 Oct/Nov 2011

29 The table gives information about four countries. Which country is likely to have the lowest standard of living? life expectancy GNP per head adult literacy country at birth (years) ($) (%) A Ethiopia 43 110 66 B India 59 350 43 C Nigeria 51 290 43 D Mozambique 45 80 39

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2011

Q35 · The inhabitants of an economy experience an increase in their cost of living, their… 0455/12 May/June 2012

24 The inhabitants of an economy experience an increase in their cost of living, their living standards and their leisure time. Which combination of events could explain these changes? average price level real GDP working week A decrease decrease increase B decrease increase decrease C increase decrease increase D increase increase decrease

1 marks

Answer: D

This question in 0455/12 May/June 2012

Q36 · The table shows the percentages of consumer spending on different items in four… 0455/11 Oct/Nov 2012

22 The table shows the percentages of consumer spending on different items in four countries, which have similar geographical conditions and climate. Which country is likely to have the highest standard of living? percentage of consumer spending on each item country food housing transport A 20 30 30 B 40 25 15 C 50 20 10 D 45 20 15

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2012

Q37 · The table shows the percentages of consumer spending on different items in four… 0455/12 Oct/Nov 2012

28 The table shows the percentages of consumer spending on different items in four countries, which have similar geographical conditions and climate. Which country is likely to have the highest standard of living? percentage of consumer spending on each item country food housing transport A 20 30 30 B 40 25 15 C 50 20 10 D 45 20 15

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2012

Q38 · In China the government is concerned about the level of poverty and the need for more… 0455/13 Oct/Nov 2012

1 In China the government is concerned about the level of poverty and the need for more resources in the poorer regions of the country. As a result, it is increasing its expenditure there and reducing it in the wealthier regions. Which economic concept does this government policy illustrate best? A diseconomies of scale B market forces C opportunity cost D specialisation

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2012

Q39 · The table shows the percentages of consumer spending on different items in four… 0455/13 Oct/Nov 2012

28 The table shows the percentages of consumer spending on different items in four countries, which have similar geographical conditions and climate. Which country is likely to have the highest standard of living? percentage of consumer spending on each item country food housing transport A 20 30 30 B 40 25 15 C 50 20 10 D 45 20 15

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2012

Q40 · Which combination of changes is most likely to result in a rise in the average living… 0455/12 May/June 2013

28 Which combination of changes is most likely to result in a rise in the average living standard in a country? Gross Domestic general price population Product level A falls falls rises B falls rises falls C rises falls falls D rises rises rises

1 marks

Answer: C

This question in 0455/12 May/June 2013

Q41 · A government wishes to raise the general standard of living in its country 0455/11 Oct/Nov 2013

9 A government wishes to raise the general standard of living in its country. In the short run, which policy would be the most likely to achieve this aim? A preventing the merger of two companies into a monopoly B raising taxation to repay government debts C reducing the rate of income tax while maintaining the services it provides D spending more on roads in rural areas rather than in city centres

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2013

Q42 · The table shows the change in real incomes for a number of occupations between 1978 and… 0455/11 Oct/Nov 2013

22 The table shows the change in real incomes for a number of occupations between 1978 and 2008. change in real income occupation % doctors 153 lawyers 114 accountants 60 bricklayers 37 bus and coach drivers 19 fork-lift truck drivers –5 What can be concluded from the table? A All occupations were better off in 2008 than in 1978. B Fork-lift truck drivers earned the lowest wages in 2008. C Doctors have earned more than lawyers since 1978. D Professionals received higher percentage increases in income than manual workers.

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2013

Q43 · The table shows the change in real incomes for a number of occupations between 1978 and… 0455/12 Oct/Nov 2013

13 The table shows the change in real incomes for a number of occupations between 1978 and 2008. change in real income occupation % doctors 153 lawyers 114 accountants 60 bricklayers 37 bus and coach drivers 19 fork-lift truck drivers –5 What can be concluded from the table? A All occupations were better off in 2008 than in 1978. B Fork-lift truck drivers earned the lowest wages in 2008. C Doctors have earned more than lawyers since 1978. D Professionals received higher percentage increases in income than manual workers.

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2013

Q44 · A government wishes to raise the general standard of living in its country 0455/12 Oct/Nov 2013

23 A government wishes to raise the general standard of living in its country. In the short run, which policy would be the most likely to achieve this aim? A preventing the merger of two companies into a monopoly B raising taxation to repay government debts C reducing the rate of income tax while maintaining the services it provides D spending more on roads in rural areas rather than in city centres

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2013

Q45 · A government wishes to raise the general standard of living in its country 0455/13 Oct/Nov 2013

23 A government wishes to raise the general standard of living in its country. In the short run, which policy would be the most likely to achieve this aim? A preventing the merger of two companies into a monopoly B raising taxation to repay government debts C reducing the rate of income tax while maintaining the services it provides D spending more on roads in rural areas rather than in city centres

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2013

Q46 · Which changes usually result when a country develops and is able to provide free health… 0455/13 Oct/Nov 2013

27 Which changes usually result when a country develops and is able to provide free health care and good living conditions? worker birth rate death rate productivity A falls falls rises B falls rises falls C rises falls falls D rises rises rises

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2013

Q47 · What is not likely to be used to measure the difference in the standard of living between… 0455/13 Oct/Nov 2013

28 What is not likely to be used to measure the difference in the standard of living between countries? A Gross Domestic Product per head B Human Development Index C the rate of poverty D the rate of interest

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2013

Q48 · The table gives information about four countries 0455/11 May/June 2014

27 The table gives information about four countries. Which country has the lowest standard of living? life % of labour GDP per head force in expectancy (US $) agriculture A 48 120 80 B 48 250 70 C 54 350 75 D 60 380 60

1 marks

Answer: A

This question in 0455/11 May/June 2014

Q49 · In South Africa, the rate of consumer spending is relatively high compared with other… 0455/12 May/June 2014

10 In South Africa, the rate of consumer spending is relatively high compared with other developing countries. However, the unemployment rate is high at 25% and only 27% of students complete the 12 years of basic education. As a result, what is also likely to be found in South Africa? A a high average standard of living B a high current rate of savings C a high level of debt among consumers D a high supply of skilled workers

1 marks

Answer: C

This question in 0455/12 May/June 2014

Q50 · Why is the Human Development Index (HDI) often considered to be better than GDP per head… 0455/12 May/June 2014

21 Why is the Human Development Index (HDI) often considered to be better than GDP per head as a measure of living standards? A GDP per head excludes economic growth. B GDP per head ignores population growth. C HDI includes more than the production of goods and services. D HDI is calculated by the national government.

1 marks

Answer: C

This question in 0455/12 May/June 2014

Q51 · The table gives information about four countries 0455/12 May/June 2014

27 The table gives information about four countries. Which country has the lowest standard of living? life % of labour GDP per head force in expectancy (US $) agriculture A 48 120 80 B 48 250 70 C 54 350 75 D 60 380 60

1 marks

Answer: A

This question in 0455/12 May/June 2014

Q52 · The table gives information about four countries 0455/13 May/June 2014

27 The table gives information about four countries. Which country has the lowest standard of living? life % of labour GDP per head force in expectancy (US $) agriculture A 48 120 80 B 48 250 70 C 54 350 75 D 60 380 60

1 marks

Answer: A

This question in 0455/13 May/June 2014

Q53 · The table shows statistics for four countries in southern Africa 0455/11 Oct/Nov 2014

24 The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of living? average annual population density real GDP life growth rate of per square per capita expectancy population (%) kilometre (US$) A 1.9 19 46 190 B 2.7 2 58 1700 C 3.7 45 59 210 D 4.2 89 44 190

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2014

Q54 · The table shows statistics for four countries in southern Africa 0455/12 Oct/Nov 2014

27 The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of living? average annual population density real GDP life growth rate of per square per capita expectancy population (%) kilometre (US$) A 1.9 19 46 190 B 2.7 2 58 1700 C 3.7 45 59 210 D 4.2 89 44 190

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2014

Q55 · As a country develops, its provision of medical care for babies and old people improves 0455/13 Oct/Nov 2014

26 As a country develops, its provision of medical care for babies and old people improves. Why might this cause a problem in raising living standards? A Gross Domestic Product will fall. B The dependency ratio will become higher. C The number of workers will fall. D The size of families in the short run will be smaller.

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2014

Q56 · The table shows statistics for four countries in southern Africa 0455/13 Oct/Nov 2014

27 The table shows statistics for four countries in southern Africa. From the information given, which country has the lowest standard of living? average annual population density real GDP life growth rate of per square per capita expectancy population (%) kilometre (US$) A 1.9 19 46 190 B 2.7 2 58 1700 C 3.7 45 59 210 D 4.2 89 44 190

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2014

Q57 · In rural areas in developing countries, farmers grow food for their own consumption 0455/11 May/June 2015

26 In rural areas in developing countries, farmers grow food for their own consumption. Why might this mean that the GDP is a weak measure of the standard of living in those countries? A The food grown is not exported. B The GDP does not include agricultural production. C The GDP only refers to the public sector. D The value of the food is unknown.

1 marks

Answer: D

This question in 0455/11 May/June 2015

Q58 · The Human Development Index (HDI) measures more than just average incomes 0455/12 May/June 2015

21 The Human Development Index (HDI) measures more than just average incomes. What are two additional measures it includes? A life expectancy years of schooling B percentage unemployed number of hospitals C poverty rate years of schooling D years of schooling access to clean water

1 marks

Answer: A

This question in 0455/12 May/June 2015

Q59 · In 2013, subsistence farming, which involved a large percentage of the population, was a… 0455/12 May/June 2015

24 In 2013, subsistence farming, which involved a large percentage of the population, was a significant activity in the Philippines and Indonesia. What can be concluded about the Philippines and Indonesia from this information? A a good use was being made of natural resources B production was likely to involve skilled labour C the GDP in these countries was likely to be underestimated D there was no need to import food because the population was self-sufficient

1 marks

Answer: C

This question in 0455/12 May/June 2015

Q60 · Which combination of changes is most likely to result in a fall in living standards in a… 0455/12 May/June 2015

27 Which combination of changes is most likely to result in a fall in living standards in a country? GDP inflation population A fall fall rise B fall rise rise C rise fall fall D rise rise fall

1 marks

Answer: B

This question in 0455/12 May/June 2015

Q61 · When elderly people retire from work, they may receive a pension income that is lower… 0455/13 May/June 2015

10 When elderly people retire from work, they may receive a pension income that is lower than their previous income. How is the proportion of their income spent on healthcare and leisure likely to change? healthcare leisure A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: C

This question in 0455/13 May/June 2015

Q62 · The Human Development Index can be used to measure human development in countries 0455/13 May/June 2015

24 The Human Development Index can be used to measure human development in countries. Which measure would not be part of its calculation? A inequality of incomes B life expectancy C standards of living D years of schooling

1 marks

Answer: A

This question in 0455/13 May/June 2015

Q63 · The table shows how three people spend their income 0455/11 Oct/Nov 2015

11 The table shows how three people spend their income. person R person S person T food and clothing 20% 45% 35% entertainment 40% 35% 40% luxury goods 40% 20% 25% Put the three people in the most likely order of their incomes, from the lowest income to the highest income. A R, S, T B S, T, R C T, R, S D T, S, R

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2015

Q64 · To make Gross Domestic Product a better measure of comparative living standards it needs… 0455/11 Oct/Nov 2015

20 To make Gross Domestic Product a better measure of comparative living standards it needs to be adjusted by A deducting the effects of exports and inflation. B deducting the effects of imports and exports. C deducting the effects of population change and exports. D deducting the effects of population change and inflation.

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2015

Q65 · The table shows the percentage change in earnings and consumer prices for four countries… 0455/11 Oct/Nov 2015

23 The table shows the percentage change in earnings and consumer prices for four countries for one year. Which country will have experienced a constant level of real income during the year? consumer earnings prices A 7.5 6 B 5 4 C 3 3 D 0 2

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2015

Q66 · How is a sharp rise in the price of oil likely to be seen by different oil-consuming… 0455/11 Oct/Nov 2015

26 How is a sharp rise in the price of oil likely to be seen by different oil-consuming countries? oil-consuming countries with oil-consuming countries with a low standard of living a high standard of living A desirable and manageable desirable and unmanageable B desirable and unmanageable desirable and manageable C undesirable and manageable undesirable and unmanageable D undesirable and unmanageable undesirable and manageable

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2015

Q67 · Which item does the Human Development Index (HDI) of a country include, in addition to… 0455/12 Oct/Nov 2015

23 Which item does the Human Development Index (HDI) of a country include, in addition to real GDP per head and life expectancy at birth? A expenditure on law and order B literacy rate among adults C number of doctors D retirement age

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2015

Q68 · Why might real GDP per head not be a good indicator of the standard of living in… 0455/12 Oct/Nov 2015

24 Why might real GDP per head not be a good indicator of the standard of living in developing countries? A It does not account for inflation. B It does not account for population changes. C It does not include primary production. D It does not include unpaid work on farms.

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2015

Q69 · The table shows the percentage changes in earnings and consumer prices for four countries… 0455/12 Feb/March 2016

22 The table shows the percentage changes in earnings and consumer prices for four countries for one year. Which country is likely to have experienced the greatest increase in real income during the year? country earnings consumer prices A France +6.5 +3.5 B Germany +4.0 +4.0 C Japan +4.0 –1.0 D UK +6.5 –2.0

1 marks

Answer: D

This question in 0455/12 Feb/March 2016

Q70 · The table shows how three people spend their income 0455/11 May/June 2016

11 The table shows how three people spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% entertainment and leisure 35% 35% 25% luxury goods 35% 40% 25% For these three people, what is the most likely order of income, from highest income to lowest income? A X → Y → Z B Y → X → Z C Y → Z → X D Z → X → Y

1 marks

Answer: B

This question in 0455/11 May/June 2016

Q71 · A government decides to make two changes to its taxation policies 0455/11 May/June 2016

18 A government decides to make two changes to its taxation policies. It lowers the tax on petrol and raises the tax on food. How do these changes affect the regressive nature of the taxes? lower petrol higher food tax tax A less regressive less regressive B less regressive more regressive C more regressive less regressive D more regressive more regressive

1 marks

Answer: B

This question in 0455/11 May/June 2016

Q72 · What is Gross Domestic Product (GDP) divided by to calculate GDP per head? 0455/11 May/June 2016

20 What is Gross Domestic Product (GDP) divided by to calculate GDP per head? A net migration B the birth rate C the total population D the working population

1 marks

Answer: C

This question in 0455/11 May/June 2016

Q73 · Why may the figure calculated for a developing country’s Gross Domestic Product be… 0455/11 May/June 2016

24 Why may the figure calculated for a developing country’s Gross Domestic Product be inaccurate? A There are unused resources. B There is a high reliance on imports. C There is a large amount of subsistence farming. D There is a small amount of skilled labour.

1 marks

Answer: C

This question in 0455/11 May/June 2016

Q74 · The table gives information on four countries 0455/11 May/June 2016

25 The table gives information on four countries. Which country is likely to be most developed? Gross Domestic life population Product expectancy (m) ($ billion) (years) A 100 800 51 B 200 6000 62 C 300 600 48 D 1000 1600 63

1 marks

Answer: B

This question in 0455/11 May/June 2016

Q75 · The table shows how three people spend their income 0455/12 May/June 2016

11 The table shows how three people spend their income. person X person Y person Z food, clothing and housing 35% 50% 20% entertainment and leisure 25% 20% 40% luxury goods 40% 30% 40% For these three people, what is the most likely order of income, from lowest income to highest income? A X → Y → Z B Y → X → Z C Y → Z → X D Z → X → Y

1 marks

Answer: B

This question in 0455/12 May/June 2016

Q76 · A country has a very high Gross Domestic Product and a small population but has a low… 0455/12 May/June 2016

21 A country has a very high Gross Domestic Product and a small population but has a low standard of living. What may be the cause of this low standard of living? A There is a high inequality of income distribution and a high provision of merit goods. B There is a high inequality of income distribution and a limited provision of merit goods. C There is equality of income distribution and a high provision of merit goods. D There is equality of income distribution and a low provision of merit goods.

1 marks

Answer: B

This question in 0455/12 May/June 2016

Q77 · Which country is likely to have the highest standard of living? 0455/12 May/June 2016

26 Which country is likely to have the highest standard of living? infant mortality birth rate death rate life expectancy rate A 41 20 31 49 B 32 14 29 59 C 25 6 25 79 D 25 5 22 79

1 marks

Answer: D

This question in 0455/12 May/June 2016

Q78 · The table shows how three people spend their income 0455/13 May/June 2016

11 The table shows how three people spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% entertainment and leisure 35% 35% 25% luxury goods 35% 40% 25% For these three people, what is the most likely order of income, from lowest income to highest income? A Y → X → Z B Y → Z → X C Z → X → Y D Z → Y → X

1 marks

Answer: C

This question in 0455/13 May/June 2016

Q79 · Which measures, in addition to Gross Domestic Product per capita, are included in the… 0455/13 May/June 2016

21 Which measures, in addition to Gross Domestic Product per capita, are included in the Human Development Index? A average earnings and inequalities of incomes B balance of trade and balance of payments C life expectancy at birth and expected years of schooling D size of population and age structure of population

1 marks

Answer: C

This question in 0455/13 May/June 2016

Q80 · Why is nominal Gross Domestic Product not a good measure to compare the standard of… 0455/12 Oct/Nov 2016

21 Why is nominal Gross Domestic Product not a good measure to compare the standard of living in a country between two years? A It does not account for inflation. B It does not allow for savings. C It does not include government expenditure. D It only compares export prices with import prices.

1 marks

This question in 0455/12 Oct/Nov 2016

Q81 · Which outcome is least likely to be found with greater economic development? 0455/12 Oct/Nov 2016

24 Which outcome is least likely to be found with greater economic development? A A greater percentage of the population are highly educated. B A greater percentage of the population are homeowners. C A greater percentage of the population are old. D A greater percentage of the population are very poor.

1 marks

This question in 0455/12 Oct/Nov 2016

Q82 · The table shows some economic indicators 0455/13 Oct/Nov 2016

23 The table shows some economic indicators. Which increase in the first indicator is most likely to lead to an increase in the second indicator? first indicator second indicator A budget surplus consumer saving B consumer spending unemployment C inflation trade surplus D productivity living standards

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2016

Q83 · This table shows how three people spend their income 0455/12 Feb/March 2017

10 This table shows how three people spend their income. person X person Y person Z food and housing 60% 20% 30% travel and leisure 20% 40% 30% luxury goods 20% 40% 40% Put the three people in the most likely order of income from the lowest to the highest income. A X, Y, Z B X, Z, Y C Y, Z, X D Z, Y, X

1 marks

Answer: B

This question in 0455/12 Feb/March 2017

Q84 · Which combination of changes in national output and population would cause an increase in… 0455/12 Feb/March 2017

21 Which combination of changes in national output and population would cause an increase in GDP per head? national output population A decrease by 4% unchanged B decrease by 5% decrease by 6% C increase by 3% increase by 5% D unchanged increase by 2%

1 marks

Answer: B

This question in 0455/12 Feb/March 2017

Q85 · A country has a low GDP and a large population but ranks relatively highly on the HDI 0455/11 May/June 2017

21 A country has a low GDP and a large population but ranks relatively highly on the HDI. Which combination may exist in the country? provision of education and income per head healthcare (merit goods) A high high B high low C low low D low high

1 marks

Answer: D

This question in 0455/11 May/June 2017

Q86 · In a developing country real incomes have risen 0455/11 May/June 2017

23 In a developing country real incomes have risen. Which situation would definitely have caused this? money price level incomes A fell fell B fell rose C rose unchanged D rose fell

1 marks

Answer: B

This question in 0455/11 May/June 2017

Q87 · The table gives information about four countries 0455/11 May/June 2017

26 The table gives information about four countries. Which country is likely to have the highest standard of living? % of labour force GDP per head life expectancy in service ($) industries A 51 250 48 B 51 400 52 C 61 450 52 D 61 400 40

1 marks

Answer: C

This question in 0455/11 May/June 2017

Q88 · In South Africa, the number of skilled workers is relatively low 0455/12 May/June 2017

11 In South Africa, the number of skilled workers is relatively low. However, average wages in South Africa are double the average wage in Brazil and Turkey and they are 1.6 times higher than in Malaysia. What may be concluded from this information? A Malaysian workers are more skilled than South African workers. B Prices in South Africa are double those in Brazil. C South Africa’s labour productivity is low. D South African trade union bargaining power is strong.

1 marks

Answer: D

This question in 0455/12 May/June 2017

Q89 · What is the change in GDP per head, after taking account of price increases (real… 0455/12 May/June 2017

23 What is the change in GDP per head, after taking account of price increases (real change), between 2000 and 2013? population consumer prices year GDP $billion million index (CPI) 2000 3 100 4000 2013 4 120 6000 A from $15 to $125 B from $1250 to $1333 C from $1333 to $1250 D from $1333 to $1500

1 marks

Answer: C

This question in 0455/12 May/June 2017

Q90 · What is likely to show that a country has a rising level of economic development? 0455/13 May/June 2017

24 What is likely to show that a country has a rising level of economic development? A a reduced inflation rate B a reduced national income per head C a reduced provision of healthcare (merit good) D a reduced unemployment rate

1 marks

Answer: D

This question in 0455/13 May/June 2017

Q91 · Why is the Human Development Index (HDI) often considered to be better than Gross… 0455/11 Oct/Nov 2017

20 Why is the Human Development Index (HDI) often considered to be better than Gross Domestic Product (GDP) per head as a measure of living standards? A GDP per head excludes economic growth. B GDP per head ignores population growth. C HDI includes more than the production of goods and services. D HDI is calculated by the national government.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2017

Q92 · Why is the Human Development Index (HDI) often considered to be better than Gross… 0455/12 Oct/Nov 2017

20 Why is the Human Development Index (HDI) often considered to be better than Gross Domestic Product (GDP) per head as a measure of living standards? A GDP per head excludes economic growth. B GDP per head ignores population growth. C HDI includes more than the production of goods and services. D HDI is calculated by the national government.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2017

Q93 · Why is the Human Development Index (HDI) often considered to be better than Gross… 0455/13 Oct/Nov 2017

20 Why is the Human Development Index (HDI) often considered to be better than Gross Domestic Product (GDP) per head as a measure of living standards? A GDP per head excludes economic growth. B GDP per head ignores population growth. C HDI includes more than the production of goods and services. D HDI is calculated by the national government.

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2017

Q94 · The table shows the rice yield in four countries 0455/11 May/June 2018

30 The table shows the rice yield in four countries. rice yield country (kilos per hectare) Japan 64 China 53 Bangladesh 20 Thailand 20 What may be concluded from this information? A Bangladesh and Thailand produce the same amount of rice. B Japan produces more than three times as much rice as Bangladesh. C Japan produces the largest amount of rice per hectare. D Japan produces the largest amount of rice per person employed.

1 marks

Answer: C

This question in 0455/11 May/June 2018

Q95 · The table shows the rice yield in four countries 0455/12 May/June 2018

30 The table shows the rice yield in four countries. rice yield country (kilos per hectare) Japan 64 China 53 Bangladesh 20 Thailand 20 What may be concluded from this information? A Bangladesh and Thailand produce the same amount of rice. B Japan produces more than three times as much rice as Bangladesh. C Japan produces the largest amount of rice per hectare. D Japan produces the largest amount of rice per person employed.

1 marks

Answer: C

This question in 0455/12 May/June 2018

Q96 · The government of a developing country allows a multinational mining company to mine… 0455/13 May/June 2018

26 The government of a developing country allows a multinational mining company to mine minerals in order to improve the standard of living of the local people. Which action by the multinational company (MNC) will not lead to an improvement in the standard of living of the local people? A building roads to assist transport B exporting mineral ore C providing skills training D returning profits overseas

1 marks

Answer: D

This question in 0455/13 May/June 2018

Q97 · The table shows the rice yield in four countries 0455/13 May/June 2018

30 The table shows the rice yield in four countries. rice yield country (kilos per hectare) Japan 64 China 53 Bangladesh 20 Thailand 20 What may be concluded from this information? A Bangladesh and Thailand produce the same amount of rice. B Japan produces more than three times as much rice as Bangladesh. C Japan produces the largest amount of rice per hectare. D Japan produces the largest amount of rice per person employed.

1 marks

Answer: C

This question in 0455/13 May/June 2018

Q98 · The table shows how three people (X, Y and Z) spend their income 0455/12 Feb/March 2019

10 The table shows how three people (X, Y and Z) spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% entertainment and leisure 35% 35% 25% luxury goods 35% 40% 25% For these three people, what is the most likely order of income, from lowest income to highest income? A Y → X → Z B Y → Z → X C Z → X → Y D Z → Y → X

1 marks

Answer: C

This question in 0455/12 Feb/March 2019

Q99 · A country has the highest GDP per head in the world 0455/12 Feb/March 2019

20 A country has the highest GDP per head in the world. What is this information most likely to suggest about the country? A It has the world’s biggest economy. B It has the world’s fastest economic growth rate. C It has the world’s greatest size of population. D It has the world’s highest standard of living.

1 marks

Answer: D

This question in 0455/12 Feb/March 2019

Q100 · A developing country starts to show increases in economic growth 0455/12 Feb/March 2019

24 A developing country starts to show increases in economic growth. What is most likely to occur? A a reduction in imports B a reduction in the number of doctors per capita C an increase in absolute poverty D an increase in incomes

1 marks

Answer: D

This question in 0455/12 Feb/March 2019

Q101 · What would not increase the Human Development Index (HDI) of a country? 0455/11 May/June 2019

21 What would not increase the Human Development Index (HDI) of a country? A an increase in the level of car ownership B an increase in life expectancy at birth C a rise in the GDP per head D a rise in the number of years of schooling

1 marks

Answer: A

This question in 0455/11 May/June 2019

Q102 · Given the following information, which country is most likely to have the highest… 0455/11 May/June 2019

25 Given the following information, which country is most likely to have the highest standard of living? birth death life infant rate rate expectancy mortality rate A Bangladesh 27 10 58 93 B Bhutan 36 14 53 107 C Botswana 31 21 40 57 D Brunei 25 5 72 22

1 marks

Answer: D

This question in 0455/11 May/June 2019

Q103 · Why is the Human Development Index (HDI) a better measure of living standards than GDP… 0455/12 May/June 2019

21 Why is the Human Development Index (HDI) a better measure of living standards than GDP per head? A It takes into account changes in output. B It takes into account changes in population. C It takes into account health and education data. D It takes into account inflation.

1 marks

Answer: C

This question in 0455/12 May/June 2019

Q104 · Given the following information, which country is most likely to have the highest… 0455/12 May/June 2019

25 Given the following information, which country is most likely to have the highest standard of living? birth death life infant rate rate expectancy mortality rate A Bangladesh 27 10 58 93 B Bhutan 36 14 53 107 C Botswana 31 21 40 57 D Brunei 25 5 72 22

1 marks

Answer: D

This question in 0455/12 May/June 2019

Q105 · The diagram shows percentage (%) changes in prices and wages over time 0455/13 May/June 2019

19 The diagram shows percentage (%) changes in prices and wages over time. 2.0 prices % change in wages 1.5 and prices 1.0 0.5 wages 0 2000 2005 2010 2015 year What does the diagram indicate? A Inflation is proportionately related to wage levels. B The gap between wages and prices is constant. C Wages are highest in 2010. D Wage earners have increasingly less purchasing power.

1 marks

Answer: D

This question in 0455/13 May/June 2019

Q106 · Why might GDP per head be underestimated in a developed economy? 0455/13 May/June 2019

20 Why might GDP per head be underestimated in a developed economy? A It does not account for changes in population. B It does not include financial services output. C It does not include the hidden economy. D It does not take into account the primary sector.

1 marks

Answer: C

This question in 0455/13 May/June 2019

Q107 · What is included in the Human Development Index (HDI)? 0455/13 May/June 2019

21 What is included in the Human Development Index (HDI)? A gender inequality B life expectancy at birth C political freedom D the impact of pollution

1 marks

Answer: B

This question in 0455/13 May/June 2019

Q108 · Given the following information, which country is most likely to have the highest… 0455/13 May/June 2019

25 Given the following information, which country is most likely to have the highest standard of living? birth death life infant rate rate expectancy mortality rate A Bangladesh 27 10 58 93 B Bhutan 36 14 53 107 C Botswana 31 21 40 57 D Brunei 25 5 72 22

1 marks

Answer: D

This question in 0455/13 May/June 2019

Q109 · The table shows how three people (X, Y and Z) spend their income 0455/11 Oct/Nov 2019

10 The table shows how three people (X, Y and Z) spend their income. person X person Y person Z food, clothing and housing 35% 50% 20% entertainment and leisure 25% 20% 40% luxury goods 40% 30% 40% For these three people, what is the most likely order of income, from highest income to lowest income? A X → Y→ Z B Y → Z → X C Z → X → Y D Z → Y → X

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2019

Q110 · What are the components of the Human Development Index (HDI)? 0455/11 Oct/Nov 2019

21 What are the components of the Human Development Index (HDI)? A life expectancy at birth, expected years of schooling, GDP B life expectancy at birth, expected years of schooling, GDP per head C population growth, adult literacy rate, GDP per head D population size, expected years of schooling, number of doctors per head

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2019

Q111 · The table shows how three people (X, Y and Z) spend their income 0455/12 Oct/Nov 2019

10 The table shows how three people (X, Y and Z) spend their income. person X person Y person Z food, clothing and housing 35% 50% 20% entertainment and leisure 25% 20% 40% luxury goods 40% 30% 40% For these three people, what is the most likely order of income, from highest income to lowest income? A X → Y→ Z B Y → Z → X C Z → X → Y D Z → Y → X

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2019

Q112 · A musician has a choice of playing for an orchestra in either Germany or England 0455/12 Oct/Nov 2019

11 A musician has a choice of playing for an orchestra in either Germany or England. Which combination of incomes and cost of living is most likely to cause her to choose the German orchestra? Incomes and cost of living in Germany compared with those in England pre-tax (gross) income after-tax (net) income cost of living A higher higher higher B higher lower lower C lower higher higher D lower higher lower

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2019

Q113 · Why was the Human Development Index (HDI) introduced as a measure of the standard of… 0455/12 Oct/Nov 2019

21 Why was the Human Development Index (HDI) introduced as a measure of the standard of living? A Education and healthcare are important contributors to the standard of living. B GDP per head only measures development. C Inequality can only be measured by HDI. D Literacy rates are not an effective measure of the standard of living.

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2019

Q114 · What is most likely to increase as a country becomes more developed? 0455/12 Oct/Nov 2019

24 What is most likely to increase as a country becomes more developed? A average household income B average size of family C infant mortality rate D the proportion of income spent on food

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2019

Q115 · A musician has a choice of playing for an orchestra in either Germany or England 0455/13 Oct/Nov 2019

11 A musician has a choice of playing for an orchestra in either Germany or England. Which combination of incomes and cost of living is most likely to cause her to choose the German orchestra? Incomes and cost of living in Germany compared with those in England pre-tax (gross) income after-tax (net) income cost of living A higher higher higher B higher lower lower C lower higher higher D lower higher lower

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2019

Q116 · Which indicator would be included in the Human Development Index (HDI) for a country? 0455/13 Oct/Nov 2019

21 Which indicator would be included in the Human Development Index (HDI) for a country? A adult literacy rate B doctors per 1000 people C unemployment rate D years spent in education

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2019

Q117 · The Human Development Index (HDI) ranks human development in countries from 0 (lowest) to… 0455/12 Feb/March 2020

25 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? A estimate of life expectancy at birth B information on the number of years of schooling C regional inequalities of investments in human capital D standard of living linked to income per head

1 marks

This question in 0455/12 Feb/March 2020

Q118 · Which combination of changes is most likely to result in a fall in living standards in a… 0455/12 Feb/March 2020

26 Which combination of changes is most likely to result in a fall in living standards in a country? GDP inflation population A fall fall rise B fall rise rise C rise fall fall D rise rise fall

1 marks

This question in 0455/12 Feb/March 2020

Q119 · Which changes usually result when a country develops and is able to provide free… 0455/11 May/June 2020

26 Which changes usually result when a country develops and is able to provide free healthcare and good living conditions? labour birth rate death rate productivity A falls falls rises B falls rises falls C rises falls falls D rises rises rises

1 marks

Answer: A

This question in 0455/11 May/June 2020

Question 120 0455/12 May/June 2020

11 People’s income decreases. How is the proportion spent on food and leisure likely to change? food leisure A decrease decrease B decrease increase C increase decrease D increase increase

1 marks

Answer: C

This question in 0455/12 May/June 2020

Q121 · Real incomes have risen in a country 0455/13 May/June 2020

24 Real incomes have risen in a country. Which situation would definitely have caused this? money price level incomes A fell fell B fell rose C rose rose D rose fell

1 marks

Answer: B

This question in 0455/13 May/June 2020

Q122 · Which changes usually result when a country develops and is able to provide free… 0455/13 May/June 2020

26 Which changes usually result when a country develops and is able to provide free healthcare and good living conditions? labour birth rate death rate productivity A falls falls rises B falls rises falls C rises falls falls D rises rises rises

1 marks

Answer: A

This question in 0455/13 May/June 2020

Q123 · One of the indicators of living standards is the Human Development Index (HDI) 0455/13 Oct/Nov 2020

24 One of the indicators of living standards is the Human Development Index (HDI). What is not taken into consideration when calculating the HDI? A education B income per head C level of savings D life expectancy

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2020

Q124 · The table shows the percentage employment in the primary, secondary and service sectors… 0455/13 Oct/Nov 2020

26 The table shows the percentage employment in the primary, secondary and service sectors in four countries. Which country is likely to be the most developed? percentage employment primary secondary service country sector sector sector A 10 35 55 B 20 60 20 C 35 35 30 D 40 40 20

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2020

Q125 · The table shows some data about an economy 0455/12 Feb/March 2021

22 The table shows some data about an economy. year 1 rate of inflation (%) 3.5 change in personal incomes (%) 2.5 What happened in year 1? A Both prices and real incomes fell. B Both prices and real incomes rose. C Prices fell but real incomes rose. D Prices rose but real incomes fell.

1 marks

Answer: D

This question in 0455/12 Feb/March 2021

Q126 · Which country is likely to have the highest standard of living? 0455/12 Feb/March 2021

24 Which country is likely to have the highest standard of living? infant mortality birth rate death rate life expectancy rate A 41 20 31 49 B 32 14 29 59 C 25 6 25 79 D 25 5 22 79

1 marks

Answer: D

This question in 0455/12 Feb/March 2021

Q127 · Gross Domestic Product (GDP) is a better measure of comparative living standards when it… 0455/11 May/June 2021

26 Gross Domestic Product (GDP) is a better measure of comparative living standards when it is adjusted for the effects of A exports and inflation. B imports and exports. C population change and exports. D population change and inflation.

1 marks

Answer: D

This question in 0455/11 May/June 2021

Q128 · Gross Domestic Product (GDP) is a better measure of comparative living standards when it… 0455/12 May/June 2021

26 Gross Domestic Product (GDP) is a better measure of comparative living standards when it is adjusted for the effects of A exports and inflation. B imports and exports. C population change and exports. D population change and inflation.

1 marks

Answer: D

This question in 0455/12 May/June 2021

Q129 · Gross Domestic Product (GDP) is a better measure of comparative living standards when it… 0455/13 May/June 2021

26 Gross Domestic Product (GDP) is a better measure of comparative living standards when it is adjusted for the effects of A exports and inflation. B imports and exports. C population change and exports. D population change and inflation.

1 marks

Answer: D

This question in 0455/13 May/June 2021

Q130 · The table shows statistics for four countries, A–D 0455/11 Oct/Nov 2021

26 The table shows statistics for four countries, A–D. Which country has the lowest standard of living? average annual growth rate of population density life expectancy real GDP per head population (per square kilometre) (years) ($) (%) A 1.9 19 46 190 B 2.7 2 58 1700 C 3.7 45 59 210 D 4.2 89 44 190

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2021

Q131 · What is the consequence of economic growth for individuals and for the economy? 0455/12 Oct/Nov 2021

18 What is the consequence of economic growth for individuals and for the economy? individuals the economy A increase in absolute poverty increase in inflation B increase in average incomes increase in government tax revenue C increase in the variety of goods and services reduction in exports D increase in unemployment reduction in the standard of living

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2021

Q132 · The table shows statistics for four countries, A–D 0455/12 Oct/Nov 2021

26 The table shows statistics for four countries, A–D. Which country has the lowest standard of living? average annual growth rate of population density life expectancy real GDP per head population (per square kilometre) (years) ($) (%) A 1.9 19 46 190 B 2.7 2 58 1700 C 3.7 45 59 210 D 4.2 89 44 190

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2021

Q133 · The table shows statistics for four countries, A–D 0455/13 Oct/Nov 2021

26 The table shows statistics for four countries, A–D. Which country has the lowest standard of living? average annual growth rate of population density life expectancy real GDP per head population (per square kilometre) (years) ($) (%) A 1.9 19 46 190 B 2.7 2 58 1700 C 3.7 45 59 210 D 4.2 89 44 190

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2021

Q134 · Which components, in addition to Gross Domestic Product (GDP) per head, are included in… 0455/11 May/June 2022

3 Which components, in addition to Gross Domestic Product (GDP) per head, are included in the Human Development Index (HDI)? A average earnings and inequalities of incomes B balance of trade and balance of payments C life expectancy at birth and expected years of schooling D size of population and age structure of population

1 marks

Answer: C

This question in 0455/11 May/June 2022

Q135 · Why would standards of living fall when there is a recession? 0455/11 May/June 2022

23 Why would standards of living fall when there is a recession? A The government would increase taxes to combat the recession. B The purchasing power of households would fall. C The value of the domestic currency would increase. D There would be a rise in the level of immigration.

1 marks

Answer: B

This question in 0455/11 May/June 2022

Q136 · The table shows some economic indicators 0455/11 May/June 2022

26 The table shows some economic indicators. Which increase in the first indicator is most likely to lead to an increase in the second indicator? first indicator second indicator A budget surplus consumer saving B consumer spending unemployment C inflation trade surplus D productivity living standards

1 marks

Answer: D

This question in 0455/11 May/June 2022

Q137 · The table shows how three people, X, Y and Z, spend their income 0455/12 May/June 2022

14 The table shows how three people, X, Y and Z, spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% entertainment and leisure 35% 35% 25% luxury goods 35% 40% 25% What is the likely order of income, from lowest income to highest income, for these three people? A Y  X  Z B Y  Z  X C Z  X  Y D Z  Y  X

1 marks

Answer: C

This question in 0455/12 May/June 2022

Q138 · Which components, in addition to Gross Domestic Product (GDP) per head, are included in… 0455/12 May/June 2022

24 Which components, in addition to Gross Domestic Product (GDP) per head, are included in the Human Development Index (HDI)? A average earnings and inequalities of incomes B balance of trade and balance of payments C life expectancy at birth and expected years of schooling D size of population and age structure of population

1 marks

Answer: C

This question in 0455/12 May/June 2022

Q139 · The table shows some economic indicators 0455/12 May/June 2022

26 The table shows some economic indicators. Which increase in the first indicator is most likely to lead to an increase in the second indicator? first indicator second indicator A budget surplus consumer saving B consumer spending unemployment C inflation trade surplus D productivity living standards

1 marks

Answer: D

This question in 0455/12 May/June 2022

Q140 · The table shows how three people, X, Y and Z, spend their income 0455/13 May/June 2022

14 The table shows how three people, X, Y and Z, spend their income. person X person Y person Z food, clothing and housing 30% 25% 50% entertainment and leisure 35% 35% 25% luxury goods 35% 40% 25% What is the likely order of income, from lowest income to highest income, for these three people? A Y  X  Z B Y  Z  X C Z  X  Y D Z  Y  X

1 marks

Answer: C

This question in 0455/13 May/June 2022

Q141 · The diagram shows a production possibility curve (PPC) for country Z 0455/11 Oct/Nov 2022

3 The diagram shows a production possibility curve (PPC) for country Z. Government policy is to move the economy from point X to point Y on the PPC. capital X goods Y O consumer goods What is the most likely effect of this policy? A Living standards rise in the short run. B More capital goods are produced. C Prices of consumer goods increase. D Total output increases.

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2022

Q142 · The table shows real GDP and population for four countries 0455/11 Oct/Nov 2022

20 The table shows real GDP and population for four countries. Which country has the highest real GDP per head? real GDP population ($ billions) (millions) A 200 80 B 100 25 C 80 50 D 60 12

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2022

Q143 · The table shows the percentage changes in earnings and consumer prices for four countries… 0455/11 Oct/Nov 2022

24 The table shows the percentage changes in earnings and consumer prices for four countries for one year. Which country is likely to have experienced the greatest increase in real income during the year? country earnings consumer prices A France +6.5 +3.5 B Germany +4.0 +4.0 C Japan +4.0 –1.0 D UK +6.5 –2.0

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2022

Q144 · The table shows the Human Development Index (HDI) for a country in two years 0455/11 Oct/Nov 2022

25 The table shows the Human Development Index (HDI) for a country in two years. year HDI value 1 0.467 2 0.609 What would not explain the changes in the HDI? A an increase in gender equality B an increase in income per head C an increase in life expectancy D an increase in years of schooling

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2022

Q145 · A musician has a choice of playing for an orchestra in either Germany or England 0455/12 Oct/Nov 2022

12 A musician has a choice of playing for an orchestra in either Germany or England. Which combination of incomes and cost of living is most likely to cause her to choose the German orchestra? incomes and cost of living in Germany compared with those in England pre-tax (gross) income after-tax (net) income cost of living A higher higher higher B higher lower lower C lower higher higher D lower higher lower

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2022

Q146 · The table shows the percentage changes in earnings and consumer prices for four countries… 0455/12 Oct/Nov 2022

24 The table shows the percentage changes in earnings and consumer prices for four countries in one year. Which country is likely to have experienced the greatest increase in real income during the year? country earnings consumer prices A France +6.5 +3.5 B Germany +4.0 +4.0 C Japan +4.0 –1.0 D UK +6.5 –2.0

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2022

Q147 · A musician has a choice of playing for an orchestra in either Germany or England 0455/13 Oct/Nov 2022

12 A musician has a choice of playing for an orchestra in either Germany or England. Which combination of incomes and cost of living is most likely to cause her to choose the German orchestra? incomes and cost of living in Germany compared with those in England pre-tax (gross) income after-tax (net) income cost of living A higher higher higher B higher lower lower C lower higher higher D lower higher lower

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2022

Q148 · The table shows the percentage changes in earnings and consumer prices for four countries… 0455/13 Oct/Nov 2022

24 The table shows the percentage changes in earnings and consumer prices for four countries in one year. Which country is likely to have experienced the greatest increase in real income during the year? country earnings consumer prices A France +6.5 +3.5 B Germany +4.0 +4.0 C Japan +4.0 –1.0 D UK +6.5 –2.0

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2022

Q149 · Which combination of government actions is most likely to raise the living standards of… 0455/13 Oct/Nov 2022

25 Which combination of government actions is most likely to raise the living standards of lower income groups in an economy? spending on personal tax-free indirect tax healthcare allowance A increase increase decrease B increase decrease increase C reduce increase decrease D reduce increase increase

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2022

Q150 · Which statement is correct about the Human Development Index (HDI) and real GDP? 0455/11 May/June 2023

24 Which statement is correct about the Human Development Index (HDI) and real GDP? A HDI includes exports and imports while real GDP does not. B HDI includes life expectancy and years of schooling while real GDP does not. C HDI includes the level of output while real GDP does not. D HDI includes the level of unemployment in the population while real GDP does not.

1 marks

Answer: B

This question in 0455/11 May/June 2023

Q151 · The Peruvian government set itself the target of reducing the number of its population in… 0455/12 May/June 2023

25 The Peruvian government set itself the target of reducing the number of its population in poverty. What change does not indicate that the Peruvian government had made progress towards this target? A a rise in employment B a rise in infant mortality C a rise in life expectancy D a rise in the level of adult literacy

1 marks

Answer: B

This question in 0455/12 May/June 2023

Q152 · The table shows the real GDP per head for a country in 2021 and 2022 0455/12 Oct/Nov 2023

21 The table shows the real GDP per head for a country in 2021 and 2022. 2021 2022 $20000 $21000 What is most likely to have changed between 2021 and 2022? A Incomes were distributed more evenly. B There was more activity in the informal economy. C The living standards of some people improved. D The rate of inflation increased.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2023

Q153 · A small country whose only export is oil decides to reduce substantially the rate at… 0455/12 Oct/Nov 2023

27 A small country whose only export is oil decides to reduce substantially the rate at which it extracts its limited oil reserves. What is the most likely reason for this decision? A to improve the balance of payments in the following year B to increase current government income C to maintain future living standards D to raise the level of employment in the oil industry

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2023

Q154 · The table shows some economic indicators 0455/13 Oct/Nov 2023

24 The table shows some economic indicators. Which increase in the first indicator is most likely to lead to an increase in the second indicator? first indicator second indicator A budget surplus consumer saving B consumer spending unemployment C inflation trade surplus D productivity living standards

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2023

Q155 · What is likely to increase with economic growth? 0455/12 Feb/March 2024

18 What is likely to increase with economic growth? A cyclical unemployment B income per head C the budget deficit D the stock of natural resources

1 marks

Answer: B

This question in 0455/12 Feb/March 2024

Q156 · The table shows statistics for four countries A, B, C and D 0455/12 May/June 2024

24 The table shows statistics for four countries A, B, C and D. According to the data provided, which country has the lowest standard of living? average years of life expectancy GDP per head schooling (years) ($) A 6 45 200 B 7 47 200 C 9 60 220 D 12 59 1500

1 marks

Answer: A

This question in 0455/12 May/June 2024

Q157 · What does the Human Development Index (HDI) indicate? 0455/13 May/June 2024

24 What does the Human Development Index (HDI) indicate? A economic development B level of unemployment C living standards D rate of inflation

1 marks

Answer: C

This question in 0455/13 May/June 2024

Q158 · The table shows the distribution of income as measured by GDP for three countries in a… 0455/11 Oct/Nov 2024

24 The table shows the distribution of income as measured by GDP for three countries in a year. percentage of GDP received by each 20% of households second second highest 20% middle 20% lowest 20% highest 20% lowest 20% Belgium 36.4 22.4 18.0 14.3 8.9 Mexico 51.7 20.0 13.5 9.4 5.4 US 46.9 22.4 15.3 10.3 5.1 What can be concluded from the table? A The lowest 20% of households in the US have lower incomes than the lowest 20% of households in Mexico. B The lowest 40% of households in Belgium receive a larger share of the country’s income than the highest 20% of households. C The distribution of income is most equal in Belgium. D The highest 20% of households in the US receive half of the country’s income.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2024

Q159 · Workers in Switzerland earn more on average than workers in Mexico 0455/12 Oct/Nov 2024

24 Workers in Switzerland earn more on average than workers in Mexico. What is a likely cause of this? A A greater percentage of workers in Switzerland work part-time than in Mexico. B The average worker in Switzerland is more productive than the average worker in Mexico. C The average worker in Switzerland pays more income tax than the average worker in Mexico. D The unemployment rate is higher in Switzerland than in Mexico.

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2024

Q160 · What is Gross Domestic Product (GDP) divided by in order to calculate GDP per head? 0455/13 Oct/Nov 2024

20 What is Gross Domestic Product (GDP) divided by in order to calculate GDP per head? A the adult population B the dependent population C the total population D the working population

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2024

Q161 · What is the consequence of economic growth for individuals and for the economy? 0455/13 Oct/Nov 2024

21 What is the consequence of economic growth for individuals and for the economy? individuals the economy A increase in absolute poverty increase in inflation B increase in average incomes increase in government tax revenue C increase in the variety of goods and services reduction in exports D increase in unemployment reduction in the standard of living

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2024

Q162 · The table shows the Human Development Index (HDI) values for two countries 0455/12 Feb/March 2025

24 The table shows the Human Development Index (HDI) values for two countries. country HDI value X 0.90 Y 0.45 What might explain the difference in the HDI values? A Country X has double the inflation rate of country Y. B Country X has half the population of country Y. C Country X spends more of its real GDP on foreign aid than country Y. D Country X spends more of its real GDP on schooling than country Y.

1 marks

Answer: D

This question in 0455/12 Feb/March 2025

Q163 · The table shows the Human Development Index (HDI) value for a country in two years 0455/11 May/June 2025

25 The table shows the Human Development Index (HDI) value for a country in two years. year HDI value 1 0.467 2 0.609 What would not explain the change in the HDI value? A an increase in gender equality B an increase in income per head C an increase in life expectancy D an increase in years of schooling

1 marks

Answer: A

This question in 0455/11 May/June 2025

Q164 · In rural areas in developing countries, farmers grow food for their own consumption 0455/12 May/June 2025

25 In rural areas in developing countries, farmers grow food for their own consumption. Why might this mean that the GDP is a weak measure of the standard of living in those countries? A The food grown is not exported. B The GDP does not include agricultural production. C The GDP only refers to the public sector. D The value of the food is unknown.

1 marks

Answer: D

This question in 0455/12 May/June 2025

Q165 · The table shows the proportion of disposable income spent on three different goods by… 0455/12 Oct/Nov 2025

11 The table shows the proportion of disposable income spent on three different goods by four different households. Which household is likely to have the lowest income? food transport holidays % % % A 50 15 5 B 35 18 10 C 30 20 15 D 20 25 20

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2025

Q166 · In one particular year, South Sudan’s population growth was 1.3% while its GDP growth was… 0455/12 Oct/Nov 2025

22 In one particular year, South Sudan’s population growth was 1.3% while its GDP growth was 2%. What is the most likely consequence of this? A GDP per capita will decrease B the rate of inflation will decrease C the standard of living will increase D unemployment will increase

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2025