11.4 Characteristics of countries at different levels of development

The table below contains some key economic data for Mexico in 2020.

Evaluate the use of these statistics in assessing the standard of living in Mexico in 2020. [20]

National income statistics are often used as a measure of the standard of living.

Consider to what extent national income statistics can be used to compare the standard of living between low-income countries and high-income countries. [20] [Sample essay]

Consider the relative merits of gross national income (GNI) and the multidimensional poverty index (MPI) as measures of the standard of living. [20]

Developing economies have a high proportion of economically inactive people relative to the size of the labour force (a high dependency ratio). This is the main reason why the standard of living is low in developing economies. Evaluate this statement. [25]

a) Distinguish between the characteristics of developed (high-income) and developing (low-income) countries. [12]

Many developing countries rely heavily on the production and export of primary products. This is the main cause of low levels of economic growth in developing countries and therefore the main explanation for the low standard of living in these countries. Discuss the extent to which you agree with this statement. [25]

a) Distinguish between productivity and the level of production and discuss why productivity is likely to be lower in a developing economy than in a developed economy. [12]

b) 'Rising population levels in a developing economy create many problems while falling population levels in a developed economy cause even greater problems.' To what extent do you think this is a true statement? [13]