Table 1 compares selected indicators for two countries. The figures were collected by an international development agency. Indicator Country P Country Q Rea...

Assessment: Economics 9214 | Paper 1 Mock 01 | Written Paper 1 Subject: Economics - 9214

Question 1 Report

Table 1 compares selected indicators for two countries. The figures were collected by an international development agency.

IndicatorCountry PCountry Q
Real GDP per person, dollars18 40016 900
Life expectancy, years6876
Adult literacy rate, %8297

(a) Which country has the higher real GDP per person? [1]
(b) Calculate the difference in life expectancy between the two countries. [2]
(c) Explain why real GDP per person alone cannot show which country has the higher standard of living. [1]

Answer Details

(a) Country P has the higher real GDP per person: 18 400 dollars compared with 16 900 dollars. [1 mark]

(b) The difference in life expectancy is:

\[76-68=8\text{ years}\]

Country Q has a life expectancy 8 years higher than Country P. [2 marks]

(c) Real GDP per person measures average real income or output per person, but standard of living also depends on non-income factors. For example, health, education, environmental quality and income distribution are not shown by real GDP per person alone. The table illustrates this: Country Q has higher life expectancy and literacy despite lower real GDP per person. [1 mark]

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