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Economics · May / June 2017 · Paper 11 · Question 21

2281Living standards

A country has a low GDP and a large population but ranks relatively highly on the HDI. Which combination may exist in the country?

  1. Aincome per head: high; provision of education and healthcare (merit goods): high
  2. Bincome per head: high; provision of education and healthcare (merit goods): low
  3. Cincome per head: low; provision of education and healthcare (merit goods): low
  4. Dincome per head: low; provision of education and healthcare (merit goods): high

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Correct answer: D. income per head: low; provision of education and healthcare (merit goods): high

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