1.
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 measure development
C. Inequality can only be measured by HDI
D. Literacy rates are not an effective measure of the standard of
living
2. 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 (output = produksi)
B. It takes into account changes in population
C. it takes into account health and education data
D. It takes into account inflation
The table shows some economics indicators.
Which combination of indicators is most likely to represent a developed country ?
Size of primary sector Birth rate (Births per Literacy rate (% of
(% of GDP) 1000) population)
A 3 10 98
B 3 22 65
C 27 32 56
D 33 35 70
4. A low-income country experiences extreme poverty in its rural areas. What is
possible cause of this
A. Development of better irrigation techniques
B. Distribution of international food aid
C. High trade barriers imposed by high-income countries
D. Higher prices for agricultural produce
5. Which change is most likely to be excpected when an economy is
developing ?
A. Birth rates increase rapidly
B. Poverty rates fall
C. Unemployment levels rise
D. The primary sector overtakes the secondary sector
6. What role does limited access to education play in the poverty cycle ?
A. Limited access to education is not a factor in the poverty cycle
B. Limited access to education can help break the poverty cycle
C. Limited access to education has no impact on the poverty cycle
D. Limited access to education contributes to the poverty cycle
7. Which policy is most likely to reduce relative poverty ?
A. Make income tax rates less progressive
B. Reduce benefit payments
C. Reduce the minimum wage
D. Reduce the rate of sales taxes
8. Economic growth, shown by an outward shift on the production possibility
frontier (PPF) diagram helps alleviate poverty. Which factor below leads to an
outward shift in the PPF ?
In
A. Reduction in capital invesments
B. Increase in the trade barriers
C. Improving education and training
D. Decrease in labour force participation
9. A country has declining population. It also has a changing population
structure in which the size of the 15 – 64 age group is becoming smaller. How
could immediately reduce labour supply shortages ?
A. Allow immigration of skilled labour
B. Encourage increases in family size
C. Invest more in technological research
D. Lower taxes and increase basic wage rates
10. In Botswana, better healthcare has meant that birth rates have been falling
faster than death rates. Also the number of children born, on average, to each
woman has declined from 6.4 to 3.2. What may concuded from this information
?
A. Government spending on education will need to increase
B. Medical improvements have resulted in falling infant mortality rates.
C. There will be a decline in income for each person working
D. There will, in the long run, be an increase in the working population
11. Case Study
In 2016, the trade union representing doctors in the UK was involved in
collective bargaining with the government over proposed changes to doctors’
contracts. The trade union considered that the aim of the change was to reduce
the cost to the government of providing healthcare. It may also result in fewer
individuals training to become doctors in the future .
Discuss whether or not a decrease in the number of doctors will reduce living
standards
12. Case Study
Average life expectancy is as short for the poorest Americans as it is for the
people of Sudan, a low-income African country. Low-income individuals tend to
live longest in countries with more educated populations. Ecoomics growth can
increase education and reduce poverty. In 2017, the US President announced a
cut in the tax on firms’ profits. He said the measure would increase
employment.
Discuss if economics growth will always improve life expectancy
13. Case Study
In 2016, France had a trade in services deficit. France is a rich, developed
country with a high standard of living. The country is, however, facing several
challenges including population problems. Also, after elections in 201,
politicians and economists debated whether the country should try to move
towards freer international trade.
Explain two population problems a rich, developed country may experience.
14. Case Study
In October 2015, the Chinese government switched from its one-child policy to
a two-child policy, partly because of the challenges caused by an ageing
population. The birth rate was falling anyway due to rising female participation
in the labour force, improvements in education, later marriages and the rapidly
rising price of housing.
Identitify two causes of an ageing population
15. Average life expectancy is as short for the poorest Americans as it is for the
people of Sudan, a low-income African country. Low-income individuals tend to
live longest in countries with more educated populations. Economic growth can
increase education and reduce poverty. In 2017, the US President announced a
cut in the tax on firms’ profits. He said the measure would increase
employment.
Identify two reasons why someone may want to migrate to the USA
15. Average life expectancy is as short for the poorest Americans as it is for the
people of Sudan, a low-income African country. Low-income individuals tend to
live longest in countries with more educated populations. Economic growth can
increase education and reduce poverty. In 2017, the US President announced a
cut in the tax on firms’ profits. He said the measure would increase
employment.
Identify two reasons why someone may want to migrate to the USA
