5.1 living standards

Question 1

factors affecting living standards

Answer 1

Investment in infrastructure: good roads and communication networks are
more attractive to businesses, which increases job opportunities.

Distribution of income within a household: number of workers/type of work

The general price level: Higher costs of living go together with high wages

Education: Highly skilled workers are more likely to get a job

Healthcare: Access to healthcare can help people to become healthier and
more productive, which allows them to earn more wages.

Wealth: the stock of assets that have a monetary value (houses, jewelry and
shares in companies, which can usually be sold for cash)

Can be acquired through inheritance, entrepreneurial skills or savings, and
can lead to a better standard of living.

Question 2

HDI

Answer 2

measure of living standards that consider 11 social indicarors form housing incom to education and health

Question 3

Hdi measures

Answer 3

A decent standard of living - measured by GDP per head.

A long and healthy life - measured as life expectancy at birth.

Access to knowledge - measured by mean and expected years of schooling.

Question 4

HDI limitaions

Answer 4

Assumes that income is distributed evenly within the country.

Ignores human rights

Does not measure factors such as working conditions, resource depletion,
pollution, professional opportunities, etc.

Question 5

living standards definiton

Answer 5

the level of wealth, comfort, material goods and necessities
available to a certain socioeconomic class or geographic area.

Question 6

real gdp per head

Answer 6

measures the average income per person in a country.

Assumption: as production and income increase, so do living standards