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151 questions
Economics/Paper 3/Economic Development and Living Standards
CAIEA-Level9708-a · Paper 3

Economic Development and Living Standards

151 questions· page 1 of 16

Q262025 Feb/Mar·P321MEasy

The graph plots the Gini coefficient and GDP per head for three countries, X, Y and Z.

What can be concluded from the graph?

Options

A   Average incomes are higher in country X than in country Z.
B   Country X is the least developed country.
C   Income is equally distributed in country Y.
D   The distribution of income in country Y is more even than in country X.

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Q282025 Feb/Mar·P321MEasy

What is not included as a weighted indicator of poverty in the Multidimensional Poverty Index (MPI)?

Options

A   cooking fuel
B   electricity
C   medication
D   water

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Q262025 May/Jun·P311MEasy

Which measurement is not included in the calculation of the Human Development Index?

Options

A   average years of schooling
B   Gross National Income per capita
C   infant mortality rate
D   life expectancy at birth

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Q302025 May/Jun·P311MMedium-Easy

What is most likely to prevent a developing country from achieving economic development?

Options

A   increased allocation of resources to production of goods that have a high income elasticity of demand
B   increased government legislation for the protection of employment
C   increased tax allowances on firms investing in research and development
D   the decision of developed countries to increase quotas for goods produced by developing countries

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Q282025 May/Jun·P321MMedium-Easy

The table shows possible changes in population, the rate of inflation and the number of years of education.

Which combination would lead to an increase in both real GDP per capita and the Human Development Index?

Options

populationrate of inflationnumber of years of education
Afallsfallsrises
Bfallsrisesrises
Crisesfallsfalls
Drisesrisesrises
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Q262025 May/Jun·P331MEasy

Which measurement is not included in the calculation of the Human Development Index?

Options

A   average years of schooling
B   Gross National Income per capita
C   infant mortality rate
D   life expectancy at birth

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Q242025 Oct/Nov·P311MEasy

What does the Kuznets curve show about the relationship between economic development and inequality?

Options

A   the Gini coefficient initially falls as countries develop from low to high income levels
B   the Gini coefficient initially rises as countries develop from low to high income levels
C   there is always a negative relationship between GDP per capita and the Gini coefficient
D   there is always a positive relationship between GDP per capita and the Gini coefficient

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Q242025 Oct/Nov·P321MMedium-Easy

Which statement is correct?

Options

A   Economic development is necessary for economic growth.
B   Economic growth and economic development are directly proportional.
C   Economic growth enables economic development.
D   Economic growth is always sustainable.

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Q262025 Oct/Nov·P331MMedium-Easy

Which combination of events would cause the biggest increase in real GDP per capita?

Options

GDPpopulationgeneral price level
Arisesfallsfalls
Brisesfallsrises
Crisesrisesfalls
Drisesrisesrises
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Q282025 Oct/Nov·P331MMedium-Easy

Which variable is included in the calculation of both the Human Development Index (HDI) and the Multidimensional Poverty Index (MPI)?

Options

A   child mortality rate
B   gross national income (GNI) per capita
C   life expectancy at birth
D   years of schooling

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