CourseCourseConceptConceptDocumentDocument

CAIE IGCSE Economics 5.1.1 Indicators of Living Standards Questions

Practise Cambridge IGCSE Economics by comparing GDP per head and HDI, explaining measurement limits and analysing growth, investment and population effects on development.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Use GDP per head, HDI and other indicators to measure or compare living standards and economic development.
  • Explain why GDP may be a weak measure of living standards, considering inequality, non-market output, population size and quality-of-life factors.
  • Analyse how growth, investment, population change or sector structure can affect HDI, GDP per head and development outcomes.

CAIE IGCSE Economics 5.1.1 Indicators of Living Standards Questions question 1

[Maximum number: 8]

There are several policy measures a central bank or government can use to reduce unemployment. One policy measure a government could use to reduce unemployment is to increase its spending on building houses. The Federal Reserve, the central bank of the US, has two main aims. One is to maintain price stability and the other is to achieve full employment. Some central banks also have economic growth as a target, but none have HDI value as a target.

Discuss whether or not an increase in a country's economic growth rate will increase its HDI value.

All question bank results loaded