Tayyari Karo Open the app

O Level Economics: Living standards, population and development, questions with answers

Practise 37 real questions on Living standards, population and development from 2021 to 2026. See the answer and explanation as soon as you answer.

37real questions
31multiple choice
11exam sessions

About Living standards, population and development in O Level Economics

Living standards, population and development is one of the 8 main topics in our O Level Economics (Cambridge (CAIE) 2281) question bank, and about 10% of its real questions come from it. Tayyari Karo has 37 real questions on this topic from 2021 to 2026, from Paper 1, Paper 2; 31 are multiple choice and marked instantly, and the rest are structured questions with a model answer. By difficulty: 24 medium, 9 easy, 4 hard.

Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.

Try 6 real questions

These are real past-paper questions. Think of your answer first, then open the explanation.

May/June 2026 · Paper 1 · Living standards, population and development

What is not likely to be used to measure the difference in the standard of living between countries?

  1. Gross Domestic Product per head
  2. Human Development Index
  3. the rate of interest
  4. the rate of poverty
Show answer and explanation

Answer: C. the rate of interest

GDP per head, HDI and poverty rates indicate living standards; the interest rate does not.

Oct/Nov 2025 · Paper 1 · Living standards, population and development

In many high-income economies, increasing income inequality has led to greater levels of poverty. Which combination of policies would aim to reduce income inequality?

  1. supply-side policy: create more competition; fiscal policy: decrease corporation tax
  2. supply-side policy: reduce the power of trade unions; fiscal policy: increase income tax
  3. supply-side policy: increase the national minimum wage; fiscal policy: increase inheritance tax
  4. supply-side policy: privatise more public sector firms; fiscal policy: increase sales tax
Show answer and explanation

Answer: C. supply-side policy: increase the national minimum wage; fiscal policy: increase inheritance tax

A higher minimum wage raises the pay of the lowest earners and inheritance tax reduces the transfer of wealth, so both narrow inequality.

May/June 2023 · Paper 1 · Living standards, population and development

Other things being equal, what will cause a population both to increase and to age?

  1. a fall in the birth rate
  2. a fall in the death rate
  3. a rise in both the birth rate and the death rate
  4. a rise in the death rate and a fall in the birth rate
Show answer and explanation

Answer: B. a fall in the death rate

A lower death rate means more people survive to old age, so the population grows and ages.

Oct/Nov 2023 · Paper 1 · Living standards, population and development

In some developing countries a large percentage of the population is involved in subsistence farming. What can be concluded from this?

  1. Each family will be able to produce enough to live on.
  2. Production is unlikely to be capital intensive.
  3. Production will be efficient.
  4. There will be a high level of trade.
Show answer and explanation

Answer: B. Production is unlikely to be capital intensive.

Subsistence farming uses mainly labour and simple tools because capital equipment is scarce and expensive.

May/June 2022 · Paper 1 · Living standards, population and development

What is likely to cause an immediate decrease in the size of the labour force?

  1. a fall in the average size of families
  2. a fall in the birth rate
  3. a reduction in the age of retirement
  4. an increase in net immigration
Show answer and explanation

Answer: C. a reduction in the age of retirement

Earlier retirement removes workers from the labour force straight away; birth rate changes take years.

May/June 2021 · Paper 1 · Living standards, population and development

The richest 60% of the population of a high-income economy received an increase in income. The income of the rest of the population did not change. What happened to absolute and relative poverty?

  1. both increased
  2. absolute poverty increased and relative poverty remained constant
  3. absolute poverty remained constant and relative poverty increased
  4. both remained constant
Show answer and explanation

Answer: C. absolute poverty remained constant and relative poverty increased

The poor are no worse off in absolute terms, but they now fall further behind average incomes.

Sessions with Living standards, population and development questions

SessionPaper 1Paper 2
May/June 20262–
May/June 202521
Oct/Nov 202531
May/June 20242–
Oct/Nov 20242–
May/June 202331
Oct/Nov 202351
May/June 202241
Oct/Nov 20222–
May/June 202131
Oct/Nov 20213–

Common questions

What does the Living standards, population and development topic cover on this page?

37 real O Level Economics (2281) questions on Living standards, population and development from 2021 to 2026, from Paper 1, Paper 2. Each one shows the year, session and paper it came from.

Do I get the answers and explanations?

Yes. Every question shows the correct answer and a short explanation the moment you answer.

Is it free?

You can start free with no signup. A small set of papers per subject is free, and Premium unlocks every paper, the full question bank and the paper PDFs.

Other Economics topics

All O Level Economics questions

Economics at other levels

Ready to start?

Free to start. No signup needed to try the questions.

Open Tayyari Karo