Living standard

What is the most popular measure of the difference in living standards between countries?

• Average price level

• Real gross domestic product per head

• The size of the population

• The value of the currency

Which of the following is not a component of HDI?

• Healthcare

• Environmental issues

• Education

• Income levels

What is most likely to cause an increase in a country's standard of living?

• A fall in the school leaving age

• A fall in the size of the labour force

• A rise in the level of pollution

• A rise in the number of doctors per head of the population

Under which circumstance would standard of living of a country be most likely to fall?

• A fall of 3% in real GDP and a fall of 6% in population

• No change in real GDP and a fall of 3% in population

• A rise of 2% in real GDP and no change in population

• A rise of 5% in real GDP and a rise of 8% in population

What measure of living standards is included in HDI, but not in real GDP?

• education

• gender equality

• income

• leisure time

Why might GDP per head rise and yet living standards fall?

• Income may be more evenly distributed

• Levels of pollution may have risen

• The size of informal economy may have risen

• Working conditions may have improved

A government decided to increase its spending on building schools and hospitals. Which aim of government policy is most likely to be achieved by this increase?

• a balance of payments surplus

• a stronger exchange rate

• economic growth

• price stability