The table shows data for two countries. Indicator Country A Country B GDP per capita ($) 45 000 3 500 % living on less than $2.15/day 0.1 38 Life expectancy...

Assessment: Economics 0455 | Paper 1 Mock 01 | Multiple Choice Subject: Economics - 0455

Question 1 Report

The table shows data for two countries.

IndicatorCountry ACountry B
GDP per capita ($)45 0003 500
% living on less than $2.15/day0.138
Life expectancy (years)8154
Adult literacy rate (%)9962
Which statement is best supported by the data?

Answer Details

The correct answer is Country B has a higher level of absolute poverty than Country A.

The data shows that 38% of Country B's population lives on less than $2.15 per day, compared to just 0.1% in Country A. Living below $2.15 per day is an internationally recognised measure of absolute poverty. Country B also has a much lower GDP per capita ($3,500 vs $45,000), lower life expectancy (54 vs 81 years), and a lower adult literacy rate (62% vs 99%), all of which are consistent with higher poverty.

The data does not provide information about income inequality within each country, so we cannot conclude which has higher inequality. There is no data on defence spending or economic growth rates, so those claims are not supported.

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