5.1, 5.2, 5.3, 5.4 Living Standards, Poverty, Population & Differences

Question 1

How are living standards measured?

Answer 1

• Single indicators (GDP per capita, doctors per 1000 people, etc)
• Composite indicators (HDI)

Question 2

Explain the Human Development Index (HDI)

Answer 2

Combination of:
- Health (life expectancy at birth)
- Education (mean years of schooling for 25yr olds + expected years of schooling for a preschooler)
- Income (real GDP per capita)
Doesn’t measure environmental damage, equal rights, happiness, etc

Question 3

List reasons for differences in living standards and income distribution

Answer 3

• Economic system (free, mixed, planned - mixed is best)
• Government policies
• Corruption
  Taxes (progressive/regressive)
• Population size
• Education levels
• Inflation (affects poorer households more)
• Personal freedom

Question 4

What is the difference between absolute and relative poverty?

Answer 4

• Absolute: cannot afford the basic necessities for a healthy and safe existence
• Relative: household income a certain % less than the median

Question 5

What are the causes of poverty?

Answer 5

• Low wages: unemployment, lack of skills, primary sector, informal employment
• Population with high number of dependants

Question 6

What policies are used to alleviate poverty?

Answer 6

Any that break the poverty cycle:
- Promoting economic growth
- Improving education
- More generous state benefits
- Progressive taxation
- Establishment/increase of a national minimum wage

Question 7

What factors affect population growth?

Answer 7

• Annual birth rate
• Annual death rate
• Net migration

Question 8

Give reasons for natural population change (birth/death rates)

Answer 8

Birth rates:
- Access to family planning/contraception
- Cost of having children
- Women’s education
- Culture/social norms
Death rates:
- Diet
- Medicine/hygiene
- Technology & transport

Question 9

What are the effects of overpopulation?

Answer 9

• Pollution
• Crime
• Unemployment/underemployment
• Food/water shortages
• Pressure on public services

Question 10

What are the effects of underpopulation?

Answer 10

• Higher taxes (fewer people paying)
• Underused resources (wastage)
• Worker shortage
• Lower exports
• Fewer customers

Question 11

What are the effects of an aging population?

Answer 11

• Increased pension payments by the government
• Increased need for care homes
• Pressure on healthcare
• Smaller labour force
• Less tax revenue

Question 12

What are the effects of falling birth rates?

Answer 12

• School closures
• Future labour shortages
• Incentives to have more children by government
• Change in migration laws

Question 13

What are the effects of migration?

Answer 13

• Population structure imbalance (male/female)
• Pressure on public services (cost for government)
• Housing shortage
• Increased traffic congestion
• Water/air pollution
• Food shortages

Question 14

What are the causes of differences in economic development between countries?

Answer 14

• Income (GDP/capita & income inequality)
• Differences in skills (productivity)
• Population size
• Sizes of economic sectors
• Education/healthcare