Living standards — Paper 1 · IGCSE Economics (9-1) 0987

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 0987/11 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 0987/12 May/June 2020

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 0987/11 May/June 2021

23 In a year, two changes occurred in a company. Company directors’ salaries increased by 15%. Office workers’ wages increased by 5%. The rate of inflation was 3.4%. What happened to real income? company directors’ office workers’ real income real income A fell fell B fell rose C rose fell D rose rose

1 marks

Answer: D

This question in 0987/12 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 0987/12 May/June 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 0987/12 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 0987/12 Oct/Nov 2021

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 0987/11 May/June 2022

22 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 0987/11 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 0987/11 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 0987/11 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 0987/12 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 0987/12 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 0987/12 May/June 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 0987/12 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 0987/12 Oct/Nov 2022

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 0987/11 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 0987/12 May/June 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 0987/12 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 0987/12 Oct/Nov 2023

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 0987/12 May/June 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 0987/12 Oct/Nov 2024

26 Which combination best describes the characteristics of a high-income economy? Human percentage of the GDP per head Development labour force in the (US$) Index value tertiary sector A high high high B high high low C low low high D low low low

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2024

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 0987/11 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 0987/12 May/June 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 0987/12 Oct/Nov 2025