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Economics (AS & A Level) · Oct / Nov 2022 · Paper 31 · Question 20

9708Economic development

Which combination indicates that GDP per capita is likely to be an accurate indicator of living standards in a country over time?

  1. Aincome distribution: equal; hidden economy as % of GDP: large; quality of goods and services produced: constant
  2. Bincome distribution: unequal; hidden economy as % of GDP: large; quality of goods and services produced: improving
  3. Cincome distribution: equal; hidden economy as % of GDP: small; quality of goods and services produced: improving
  4. Dincome distribution: unequal; hidden economy as % of GDP: small; quality of goods and services produced: constant

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Correct answer: C. income distribution: equal; hidden economy as % of GDP: small; quality of goods and services produced: improving

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