CIE IGCSE NOTES

5.0 Economic development

Practice

True / False - Living Standards

20 questions

Question 1 of 20

The education component of the HDI measures the mean years of schooling and expected years of schooling in a country.

Question 2 of 20

Standard of living refers to the social and economic wellbeing of individuals in a country at a particular point in time.

Question 3 of 20

Expected years of schooling in the HDI captures the educational opportunity available to children currently entering the school system.

Question 4 of 20

A key advantage of the HDI is that it combines multiple aspects of human development, not just economic output.

Question 5 of 20

Inflation reduces purchasing power and therefore lowers the standard of living.

Question 6 of 20

Countries with better educational systems tend to have higher HDI scores and higher living standards.

Question 7 of 20

A country can have a relatively low GDP per capita but a high HDI if it invests heavily in healthcare and education.

Question 8 of 20

The HDI accounts for environmental degradation resulting from economic growth.

Question 9 of 20

Political freedom is irrelevant to explaining differences in living standards between countries.

Question 10 of 20

High population density always raises living standards by increasing economic activity.

Question 11 of 20

Differences in living standards between developed and developing countries can be reduced through investment in education and healthcare.

Question 12 of 20

Rural areas within a country often have lower living standards than urban areas.

Question 13 of 20

In Diagram D, income distribution is shown as a factor that can significantly affect living standards.

Diagram D — Factors Influencing Living Standards Standard of Living Productivity levels Role of government Level of education General price level Income distribution Regional differences Level of freedom

Diagram D — seven factors influencing standard of living

Question 14 of 20

In Diagram C, HDI is shown as a better indicator of living standards because it captures health and education dimensions that GDP per capita misses.

Diagram C — GDP per capita vs HDI Real GDP per capita • Single economic measure • Easy to calculate • Ignores health & education • Ignores distribution • Ignores non-market work HDI • Composite (3 dimensions) • Includes health & education • Ignores gender inequality • Ignores environment • Ignores income distribution

Diagram C — comparing the two indicators side by side

Question 15 of 20

The HDI ignores gender inequalities within countries.

Question 16 of 20

The healthcare component of the HDI measures life expectancy at birth.

Question 17 of 20

An economist can fully measure standard of living using a single indicator.

Question 18 of 20

Political freedom and civil liberties have no effect on standard of living.

Question 19 of 20

Inflation differences between countries can explain differences in real purchasing power and living standards.

Question 20 of 20

A country can have a high GDP per capita but a low HDI if health and education outcomes are poor.

Practice

True / False - Population

20 questions

Question 1 of 20

Population pyramids are graphical representations of a population's age and gender distribution.

Question 2 of 20

Access to clean water and sanitation has no effect on death rates.

Question 3 of 20

Net migration rate is calculated as immigration minus emigration.

Question 4 of 20

Social and cultural factors are among the most significant influences on a country's birth rate.

Question 5 of 20

A higher dependency ratio means a greater burden on the working population.

Dependency Ratio — Diagram D Dependants Under 15 Over 65 Working Population Ages 15–65 ÷ Ratio Dependants per Worker Higher ratio = greater burden on the working population

Diagram D — dependency ratio structure

Question 6 of 20

Population growth is always beneficial for an economy.

Question 7 of 20

Higher levels of education among women often correlate with lower birth rates.

Question 8 of 20

Economic factors such as income and employment opportunities can affect family planning decisions.

Question 9 of 20

Access to prenatal and maternity care reduces birth rates by discouraging pregnancies.

Question 10 of 20

Diagram C shows that output per head is maximised at the optimum population level.

Optimum Population — Diagram C Population size Output per head Optimum Under-populated Over-populated High

Diagram C — the optimum population curve

Question 11 of 20

Nutrition and food security have no role in explaining differences in death rates between countries.

Question 12 of 20

Resource depletion is a consequence of over-population.

Question 13 of 20

The ability to control epidemics is a key factor in reducing death rates.

Question 14 of 20

Demographics is the study of population distribution and trends.

Question 15 of 20

Developed countries with better nutrition, healthcare, and sanitation consistently have lower death rates than developing countries.

Question 16 of 20

The left side of a population pyramid represents the male population and the right side represents the female population.

Question 17 of 20

A country with a very low death rate will always have a rapidly growing population.

Question 18 of 20

Net migration rate has no effect on a country's population growth.

Question 19 of 20

Environmental hazards such as pollution increase death rates.

Question 20 of 20

Net migration rate is the difference between the number of immigrants and the number of emigrants.

Practice

True / False - Poverty

20 questions

Question 1 of 20

Reducing absolute poverty requires ensuring people have enough income to cover basic survival needs.

Question 2 of 20

In Diagram D, improved education is shown as a policy that raises human capital and earning potential, reducing poverty.

Diagram D — Policies to Alleviate Poverty Reduce Poverty Economic Growth Improved Education Better Healthcare Provision State Benefits / Social Protection Progressive Taxation National Minimum Wage

Diagram D — six key policies to reduce poverty

Question 3 of 20

High public debt reduces a government's ability to spend on poverty-reducing services.

Question 4 of 20

A national minimum wage is only effective at reducing poverty if it is set at or above the living wage.

Question 5 of 20

Malnutrition is both a cause and a consequence of poverty.

Question 6 of 20

Poverty can create a cycle of disadvantage that passes from one generation to the next.

Question 7 of 20

Elderly poverty occurs because elderly individuals may lack the income necessary to sustain their standard of living.

Question 8 of 20

Social exclusion caused by poverty can prevent people from fully participating in their community and economy.

Question 9 of 20

Intergenerational poverty means children growing up in poor households are more likely to experience poverty as adults.

Question 10 of 20

A minimum wage that is set too high can cause unemployment, potentially worsening poverty.

Question 11 of 20

Reducing poverty requires only one policy — economic growth — and no other interventions are necessary.

Question 12 of 20

The World Bank's poverty line is used to compare absolute poverty levels between countries.

Question 13 of 20

Poor healthcare is a cause of poverty due to insufficient investment in health services and limited access to medical facilities.

Question 14 of 20

People in poverty typically have good access to education and essential services.

Question 15 of 20

A lack of skills and education reduces a worker's employability and contributes to poverty.

Question 16 of 20

Homelessness and inadequate housing are consequences of poverty.

Question 17 of 20

Poverty can reduce aggregate demand in an economy by limiting the spending power of a large portion of the population.

Question 18 of 20

Absolute poverty thresholds vary significantly between different countries.

Question 19 of 20

Relative poverty is a comparative measure of poverty where people have a lower standard of living compared to others in their society.

Question 20 of 20

Investing in healthcare reduces poverty through both short-term relief and long-term productivity gains.