Economics (AS & A Level) · Feb / March 2022 · Paper 32 · Question 18

Economic growth has both benefits and costs. In which situation would living standards be judged to have definitely increased?

1. AAs countries became industrialised, economic growth led to a fall in hours worked, as well as a rise in real incomes.
2. BChina had a huge rise in real GDP per head in the last 20 years but there was a decrease in air quality in urban areas.
3. CEconomic growth in high-income countries has seen childhood obesity increase, but has also seen increased resources devoted to its treatment.
4. DThe 1990s saw a significant rise in real GDP per head in the US with only a relatively small increase in the Gini coefficient during the same period.

As printed in the paper