Question 1 Report
Table 1 compares selected indicators for two countries. The figures were collected by an international development agency.
| Indicator | Country P | Country Q |
|---|---|---|
| Real GDP per person, dollars | 18 400 | 16 900 |
| Life expectancy, years | 68 | 76 |
| Adult literacy rate, % | 82 | 97 |
(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]
(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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