Back

Living Standards | O Level Economics 2281 & IGCSE Economics 0455 | Detailed Free Notes To Score An A Star (A*)

Views 0
  • All the factors that contribute to a person’s happiness and well living is called living standard
  • Different measures
    • GDP per head/ per capita
    • The better measure is real GDP/ capita
      • Divide real GDP by the total population
      • Average income per person in the economy can be calculated
  • Benefits of using this method
    • Tells about material wellness in an economy
    • Production is considered as well, therefore the level of goods and services are considered as well
    • Employment level can be understood as well
    • Population and GDP data can be collected easily
  • Drawbacks
    • Differences in income or what is purchased not considered
    • Technological impacts are not considered
    • Inequality is not considered
    • Unpaid work is not considered as well
    • No differentiation between positive and negative value economies in different output and expenditure
    • GDP can be over stated
    • Population metrics can be understated
    • Many other factors that affect happiness are not considered
    • Common currency required and adjustment for purchasing power parities required for global comparison
    • GDP methods between different countries can be different.
  • Human Development Index (HDI)
    • HDI is used by UN for comparison between countries
    • Income Index through gross national income per head which is adjusted for different exchange rates and prices (purchasing power parity ruled out)
    • Education Index based on how many years for a person aged 25 will have spent on education called years of schooling
      • Years a young child entering school
      • Expected years of schooling
    • Healthcare index
      • Average life expectancy at birth
  • Benefits of HDI
    • Major indicators
    • Social factors considered
    • Global living standards compared
    • Useful and reliable method as produced by UN and not biased
      • High recognition
  • Problems of HDI
    • Separate indicators are considered together which means very varied results
    • Divergences between countries
    • Inequality in income not considered
    • Other factors like Environmental quality or political freedom etc. not considered
    • HDI for all countries not available.
  • Why there are different income distribution and living standard between countries
    • Within a country can be due to high and low living standards between different areas of the countries
    • Regional variations will occur in income, spending, consumption etc.
    • Sector and Jobs h different levels
    • Education and health provision by different governments
  • Difference between countries
    • Productivity issues
    • Which industries dominate the country
    • Population level
    • Service provision like health etc.
    • Variety of products
    • War, politics, crime rate, natural issues, infrastructure damaged etc.
Hunain Zia

Hunain Zia has previously achieved considerable success in the high-school educational stream, gaining a massive 154 Total A Grades and 7 Major Distinctions, a process in which he broke/ set 11 different world records, including the most A grades ever achieved, most subjects ever appeared in, most distinctions, gaining distinctions across two separate boards (Pearson Edexcel and CAIE) within the same year/ ever, and even 19 hours of constant examination. All records stand intact today. Hunain pursued his Honors Accounting Degree from the prestigious Bentley University, and then completed an LLB (in Honors) from University of London. Currently, he manages multiple social and commercial projects, has founded digital streams and works tirelessly in the education sector.

Educate A Change focuses on truly bringing change in the educational sector worldwide. All our courses are designed to ensure success, and provide complete preparation without requiring any other external material. Therefore, it takes away the expense of academies, books, past paper compilations and other miscellaneous items. Instead, by just the courses we offer, the student can prepare fully for the best grades in their CAIEs, Edexcel and other high-school exams. The earnings from our course-sales are invested in social projects and growing the free educational activities of Educate A Change.